The World Bank will provide to Bulgaria the euro equivalent of 200 million US dollars to continue reforms in the social sector, the Government Information Service said.

The Government proposes to Parliament to grant its consent for negotiations and the conclusion of a loan agreement with the international finance institution. This Development Policy Loan 3 (DPL 3) is for the development of policies in the social sector.

Bulgaria's strategy for partnership with the World Bank, approved in 2006, envisages that three loans will be provided to the country for the development of policies in support of reforms planned by the Government. The loans are an instrument for the implementation of medium-term plans for political and institutional reforms and the country's full integration in the EU.

DPL 3 will be negotiated as a loan in support of the balance of payments. This financial resource will be used to support the approval and implementation of policies for the enhancement of employment and long-term growth of productivity by the provision of incentives for the creation of jobs, improvement of the quality of education and promotion of fiscal stability through an increase of effectiveness in the social sectors.

The loan repayment deadline is 19 years, with a seven-year grace period. The interest rate will be based on the six-month LIBOR in euro.

Source: BTA