Romania To Privatize Cinema Halls Oct-Nov – Minister

Iorgulescu met with Romanian filmmakers to draw a national strategy for the industry. The meeting is attended by Demeter Andras, state secretary in the Culture Minsitry, Eugen Serbanescu, general manager of the National Cinematography Center, Maxim Meca, general manager of RADEF, directors Cristian Mungiu, Tudor Giurgiu, Radu Gabrea, Corneliu Porumboiu, Laurentiu Damian, and producers including Vlad Paunescu and Kodak Cinelabs manager Cornelia Popa.

 

"We have a problem with assets, our cinema halls. Romania is the only country in the former socialist block that hasn’t privatized its cinema halls yet,” Iorgulescu said.

 

He added that two weeks ago an emergency ordinance was presented to the government regarding the film distribution company.

 

"Essentially, the ordinance stipulates the privatization strategy for RADEF,” Iorgulescu said.

 

The ordinance sets that RADEF will be reorganized as a joint stock company, and the new entity would take over the company’s assets, including the assets it manages and which are in the private property of the state.

 

In a first stage, the minister said, some cinema halls administered by RADEF would be transferred into the administration of local authorities.

 

"We plan to give local authorities, upon their request, some cinema halls. But we will oblige local authorities to maintain these halls to their initial purpose for ten years, to modernize them and keep the entire staff. Mayors breaching these conditions are liable to criminal prosecution,” Iorgulescu said. According to the ordinance, this transfer is due by August 31, 2008.

 

In a second stage, in October-November, RADEF RomaniaFilm is to be privatized.

 

"We will either sell the entire distribution network to a single investor, or we may split the network into regional packs of five-six cinema halls and sell them,” the minister said, adding the sale would be achieved with open bid.

 

RADEF currently holds 317 cinema halls and theater gardens, part of which are rented and others fall under property restitution claims.