Romanian Petrochemistry Needs State Aid To Revive - Interim Econ Min

"2010 will be an important year when the government must treat its state aid policy with utter seriousness," Videanu told a news conference Tuesday.

The government plans to grant EUR330 million in state guarantees to Rafo Onesti, so that the refinery might complete its investment program.

Moreover, Romania, which owns a 54% stake in Oltchim through the Economy Ministry, approved a EUR50 million guarantee granted by state-owned lender EximBank for the chemical plant, so that it might buy the petrochemical activity of Arpechim refinery owned by oil company Petrom (SNP.RO). Oltchim will borrow EUR62 million for taking over Petrom's petrochemical assets, and the loan will be 80% guaranteed by the state.

As 2010 is seen as a difficult year for companies that need loans, due to Romania's weak economic situation, the government must support the economy through state aid and state guarantees, Videanu said, adding that that small- and medium-sized enterprises and the large industrial producers are a priority.

The Economy Ministry is ready to access most of the state guarantees managed by the Finance Ministry, and each sector will be analyzed from the state-aid necessity perspective, he also said.

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