Romanian, Kazakh Presidents Set Up Jan Talks For Rompetrol Debt

Romanian President Traian Basescu said Wednesday a Kazakh delegation will arrive in Bucharest in January to discuss the debt owed by oil company Rompetrol.

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Basescu said he recently discussed the matter with his Kazakh counterpart, proposing that payment be spread over a two- or three-year interval, in fixed installments and on fixed dates, since Rompetrol is understandably facing financial difficulties in the current economic context.

Kazakh president Nursultan Nazarbaev said in his turn that a delegation would be sent to Bucharest in January to discuss the methods and timeframes of payment.

"Here we're speaking of a $580 million debt that the state needs to collect. (…) The sum can be paid in stock as well, should we decide to do so, but the stock needs to cover the sum upon payment," Basescu said.

The Court in Romanian city Constanta recently allowed a request lodged by refinery Rompetrol Rafinare (RRC.RO) to boost its share capital, which requires the state's return to the ownership structure.

The court rejected as unfounded the local Finance Ministry's request for the operation to be cancelled.

Prime Minister Emil Boc enabled government representatives to continue litigation with Rompetrol Rafinare, so that the state may collect the debt owed by Rompetrol Rafinare.

Late-June, Rompetrol Rafinare shareholders approved a 450 million lei (EUR1=RON4.2998) share capital hike, planning to use the funds to pay some of the debt owed to the state.

Company shareholders subscribed stock worth RON329.49 million in the operation. The Finance Ministry challenged the operation in court.

Rompetrol Rafinare, owned by Dutch-based Rompetrol Group, was supposed to repay the Romanian authorities a historic debt of EUR570 million by September 30.

The debt was issued by Petromidia refinery in 2003 and was converted into seven-year bonds by government decision.

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