EXCLUSIVE: Romania To Cap Monitored Companies’ Losses At RON4B In 2010

According to the letter, obtained by MEDIAFAX Thursday, the combined losses of the ten companies monitored by the IMF are not to exceed RON3 billion at the end of September and RON4 million at year-end.

Romania and the IMF agreed last year on a EUR13 billion stand-by loan, as part of a EUR20 billion package that also includes funds from the European Commission, the World Bank and other international lenders.

Under the agreement, Romania pledged to closely monitor loss-making companies in the public sector and reduce the number of granted subsidies.

Some of the state owned companies subject to monitoring include railway companies CFR, CFR Marfa and CFR Calatori, pitcoal mining company CNH, electricity producer Termoelectrica, subway company Metrorex and the National Road and Highway Company.