DPL

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The objective of the First Development Policy Loan (DPL) Program for Romania is to support the Government's reforms in fiscal management, social protection, and the financial sector. This operation is being proposed as the first of a series of three single tranche programmatic loans totaling Euro 1 billion. The first DPL is for Euro 300, and the second and third DPL will be Euro 360 million and Euro 340 million respectively. The DPL program supports the Government's structural reforms in three key areas: a) improving fiscal sustainability and public financial management (cross-sectoral reforms and reforms in two key sectors-health and education); b) enhancing social protection systems-social assistance and pensions-to address the immediate needs of the poor and vulnerable but also to ensure more effective social protection over the longer term; and c) strengthening the contingency planning and resilience of the financial sector. In the fiscal and financial sector areas, which are also being covered by the International Monetary Fund (IMF) and the European Commission (EC) programs, the Bank operation reinforces and complements the measures envisaged under these respective programs.