Florin Georgescu, deputy PM and finance minister, and Francois Rantrua, International Bank for Reconstruction and Development (IBRD) Country Manager for Romania, yesterday signed the Public Loan Agreement between Romania and the IBRD over a EUR 1 bln Development Policy Loan, with Deferred Drawdown Option (DPL – DDO). According to a press release, the foreign loan adds to the treasury cash buffer, as the Ministry of Public Finance (MFP) does not intend to use this amount given that the treasury balance matches the level agreed with international institutions, the loan being of a precautionary type. The Tuesday-signed agreement follows the MFP’s successful transaction on the foreign capital market Sept 4 which raised EUR 750 M The 12-year loan has a grace period of 11.5 years, at an interest equal to EURIBOR 6 months interest + a 0.60 pc fixed margin applied on drawdown date, according to the latest IBRD information (circa 1.11 pc as we speak), paid every six months. This is a bullet loan <the payment of the entire principal of the loan is due at the end of the loan term>. The bank charges an initial fee of 0.25 pc applicable to the loan amount to be paid after the loan agreement goes into effect, and a stand-by fee of 0.50 pc applied to the loan amount yet not drawn and payable every six months, until the entire loan amount is drawn.