World Bank grants EUR 60 mln loan for Romanian Justice Services Improvement Project

The World Bank’s Board of Executive Directors approved today a EUR 60 million (USD 66.99 million equivalent) financing to Romania for the Justice Services Improvement Project. The Romanian Government will contribute with EUR 5 million towards a total project cost of EUR 65 million. The initiative backed by the international financial institution will enhance the efficiency and accessibility of selected justice institutions in the country.

The World Bank has supported these efforts with USD 130 million over the past decade. The number of firms reporting bribery in dealing with courts dropped from 14 percent in 2008 to 1 percent in 2013, while the percentage of companies reporting that courts are not a problem for business operations increased from 28 to 73 percent over the same period, according to the World Bank’s Business Environment and Enterprise Performance Survey (BEEPS). Judiciary institutions have taken an active role in tackling corruption and the time needed to resolve civil and administrative cases is shorter than the EU average.

Despite progress, many of Romania’s courts suffer from inadequate justice infrastructure and do not meet EU standards, which undermines the efficiency and delays the access to services for businesses and citizens, in particular for those in rural and poor areas. Moreover, existing information and communication technologies (ICT) are obsolete and limit the ability of institutions to function adequately and ensure online-based and efficient interactions with clients and counterparts.

“Supporting the continuity and efficient implementation of justice services and anti-corruption efforts is at the heart of shaping a Romania that is fair and accountable to its citizens, attractive to investments, and committed to strengthening its public sector. The World Bank is pleased to stand by Romania’s side in its efforts to make modern, efficient, participatory, and transparent justice services work for all Romanians, regardless of geographic location and income status, ” said Elisabetta Capannelli, World Bank country manager for Romania and Hungary.

The Justice Services Improvement Project will rehabilitate and build courthouses, particularly in poor and underserved regions of Romania, and will assist the National Trade Registry Office (NTRO) in adhering to EU standards concerning services related to information about companies, certificates, bankruptcy-processing procedures, and other elements encompassing the life cycle of a company.