Romanian Transp Min: Railway Sector Subsidies Should Be Hiked By 30-40%

Berceanu said, at the end of a meeting with the International Monetary Fund officials, that subsidies are calculated at much lower values than necessary and this situation only leads to gaps, overdue debts and ultimately to figures, which International Monetary Fund officials, just like anyone else, would find erratic.

The minister also said talks with the IMF officials at the Finance Ministry headquarters touched the country’s three state-owned railway companies and Bucharest subway company Metrorex.

According to Berceanu, the IMF officials said they only want steps taken into the right direction, not unrealistic measures imposed on the ministry.

In turn, Finance Minister Sebastian Vladescu said, with respect to overdue debts to the state budget amassed by state-owned companies, that measures will be taken to turn their businesses more profitable and efficient and help recover debts

„Today (Monday e.n.), we have touched the issue of state-owned companies and ways to reduce overdue debts, which consist, among others, of measures meant to turn their businesses more profitable (…),” said Vladescu.

Vladescu also said staff costs are established in the budgets of revenue and expenses of all state-owned companies, arguing each company knows exactly its staff spending threshold.

An IMF mission is in Romania between January 20 and January 27 to assess the country’s economic performance in view of disbursing additional EUR2.3 billion from its loan.

Romania and the IMF signed last spring a EUR12.95 billion two-year arrangement as part of a wider EUR19.95 billion aid package which includes funds from the EU, the World Bank and other international lenders.