Major Romanian Companies to Be Privatised
The Romanian authorities have once again promised to the representatives of the international lenders to privatise loss-making state-owned companies. New deadlines have also been set for stock exchange listings and for the appointment of professional mana
Daniela Budu, 23.01.2013, 13:45
IMF representatives have discussed in Bucharest with officials from the ministries of Economy, Transportation and Energy, about the reform of state-owned companies and about delays in Romania’s implementing its prior commitments. The list of companies with such delays includes Oltchim Ramnicu Valcea, the National Freight Rail Corporation, Transgaz and Tarom. Transportation Minister Relu Fenechiu said, after the meeting with the international lenders, that the privatisation of the National Freight Rail Corporation became the top priority of his ministry.
According to him, given the current economic state of the company, a recovery is only possible if a private investor contributes to the company’s capital. The national airline, Tarom, is due to sell a minor stake of 20% of its shares. The deadline for both companies to finalise these procedures is six months. Relu Fenechiu added that within 90 days all companies subordinated to the ministry would have professional management. In turn, the Economy Ministry set new deadlines for stock exchange listings and the appointment of professional managers. Minister Varujan Vosganian had this to say, about the talks with the international assessment mission:
Varujan Vosganian : “We already have a tentative plan, that we have presented to the European Commission, IMF and the World Bank. In principle, they agreed that our formula is the right one.”
As for the energy sector, the Delegate Minister for Energy Constantin Nita explained: “We have deadlines until the end of April for the sale of minor stakes, particularly in Transgaz and Nuclearelectrica, and until the second half of the year and first quarter of 2014 for the other companies. The first companies scheduled to select private management will be Transgaz, Nuclearelectrica and Romgaz.”
The economy minister also announced that, starting on February 1st, the companies that develop mineral resources, as well as the gas and electricity providers and carriers will pay additional taxes. He promised however that the new taxes would not affect the costs of these companies, but only their profits, and that they would not affect the prices paid by consumers.
Constantin Nita: “It is a short-term measure and everybody must contribute to the country’s efforts to overcome the crisis. After making huge profits and paying small royalties to the state, it’s time these companies joined the collective efforts of the Romanian society. This government order clearly stipulates that the taxes are not to be included in the price charged to consumers, but will only affect company profits.”
Meanwhile, under an order issued by the National Energy Regulatory Authority, natural gas producers will have to sell 45% of the gas they extract this year in public tenders. At present, the gas produced domestically is sold for a price recommended by the Authority, which is three times lower than the price paid for imported gas.
