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Romania’s Govt May Dissolve Privatization Auth, Include It In Econ Ministry – Sources

Romania’s government plans to dissolve the country’s privatization authority AVAS, either by merging it with the Economy Ministry’s office for state participations and privatization in industry OPSPI, or by setting up a new department within the ministry.
Romania’s Govt May Dissolve Privatization Auth, Include It In Econ Ministry - Sources
08 ian. 2010, 12:31, English

The variants were analyzed during the government’s meeting Wednesday and will be discussed again in next week’s meeting, people close to the matter told MEDIAFAX Friday.

The sources said OPSPI does not currently have any post-privatization or debt-recovery attributions.

AVAS’s revenues are obtained mainly from the privatization and administration of state participations, as well as by selling bank receivables and assets.

The institution monitors over 10,000 privatization contracts with final deadlines in 2015-2020. It has to recover debts from over 50,000 debtors.

AVAS’s revenues dropped dramatically in 2009, over failure to complete important announced or undertaken projects such as the sale of airplane maker Avioane Craiova (AVIO.RO) or the setup of a new investment fund.

According to the institution’s data, AVAS’s portfolio included 412 companies that could be sold, whose share capital totaled 3.23 billion lei (EUR1=RON4.1721). The institution owned majority stakes in 36 companies and minority stakes in 376.

Early-2009, the government decided to transfer OPSPI and the companies within its portfolio to the Economy Ministry. OPSPI has been included in AVAS since 2006.