World Bank Lends Bulgaria 141.7 Mln Euro for Reforms, Social Projects

The two loans are finance reforms in healthcare, education and social protection sectors, the country's Finance Minister Plamen Oresharski said after the signing of the deals.

The first loan, Development Policy Loan (DPL) 2, is worth 101.7 million euro adn complements the first DPL 1 loan worth 114 million euro extended to Bulgaria last year. The World Bank will extend altogether three such loans, it said last year.

The DPL series is supporting the adoption and implementation of policies to increase employment and lay the foundations for long-term productivity growth by providing incentives for job creation and improving quality of education; and promote fiscal sustainability through efficiency gains in social sectors.

The second loan agreement signed on Tuesday is worth 40 million euro. It was extended under the Social Inclusion Project (SIP) for Bulgaria aimed at promoting social inclusion through increasing the school readiness of children below the age of seven, targeting low-income and marginalized families.

Each of the loans shall be paid back within 17 years, including a five-year grace period.

($ = 0.7938 euro)