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August 15, 2022
ECONOMYFINANCE&BANKING

Romania sends to Brussels the first payment request under NRRP

Finance Minister Adrian Caciu signed on Tuesday Romania’s first payment request for 907.669 million euros under the loan agreement of the European Union’s Recovery and Resilience Facility.

According to the Finance Ministry, the document was signed by Caciu as Romania sent to Brussels a payment request for a total disbursement of 3 billion euros.

 

This is the first of 10 instalments scheduled to be made available in 2022-2026. Under the regulation establishing the Recovery and Resilience Facility, the member states may submit payment requests twice per year.

“The government’s outmost priority is the implementation as quickly and efficiently as possible of the reforms undertaken under the National Resilience and Recovery Plan (PNRR). Romania has fulfilled in time and in full the seven milestones associated with this instalment provided for in the National Recovery and Resilience Plan, and the submission of the payment request to the European Commission was made conditional upon that. This is another step that we are taking so that every penny spent is for the modernisation of the country,” said Caciu, acording to Agerpres.

The Finance Ministry says that each loan is granted on favourable terms, at the level of costs of the European Commission, and it has a maturity of 30 years from the date of being made available, including a ten-year grace period. Reimbursement will be made in equal instalments for the remaining period until maturity.

The National Recovery and Resilience Plan is built on six policy pillars provided for in the regulation establishing the Recovery and Resilience Facility and is divided into 15 components to cover the needs of Romania and, at the same time, to follow the priorities of the European Commission. The six pillars are: green transition; digital transformation; smart, sustainable and inclusive growth; social and territorial cohesion; health, and economic, social and institutional resilience; and policies for the next generation, children and the youth.

On Tuesday, Romania’s Ministry of European Investment and Projects (MIPE) sent to the European Commission the first payment request under the National Recovery and Resilience Plan (NRRP) for about 3 billion euros. Of this amount, EUR 2.03 billion is non-reimbursable financial support and EUR 0.90 billion is in the form of a loan.

From the amount requested for reimbursement under the payment request, Romania will collect 2.56 billion euros, the value resulting from the deduction of the pre-financing received so far. Specifically, 1.77 billion euros from the grant component will be repaid and 0.78 billion euros from the loan component.

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