Romania’s AVAS Mulls Two-Year Extension For Cos To Meet Privatization Obligations

The draft act proposes the extension by a maximum two years of the period in which companies that received state aid are obliged to implement restructuring programs and make investments they committed to in privatization contracts.

The extension was proposed at the request of companies that received state aid and which have been affected by the economic crisis and are unable to meet their obligations within the deadline, as they have lowered their output, can’t get loans and are faced with increased costs for raw materials and services.

Before Romania joined the European Union in 2007, the country’s Competition Council approved 77 individual state aid programs to bail out and restructure companies in difficulty, as well as four state aid schemes, three of which targeted small and medium-sized enterprises and one targeted regional investments.