Romanian PM Pledges To Sell Or Reorganize State-Owned Cos

„Privatization needs to continue at (railway freight transporter) CFR Marfa, while companies that register losses will be restructured. The choice will be between restructuring or privatization, depending on the case,” Boc said Monday on public radio.

State-owned companies monitored by the IMF and the European Commission widened losses in the last months, prompting the financial institutions to recommend their privatization or liquidation, Jeffrey Franks, chief of the IMF delegation to Romania, told a news conference Monday.

Franks said the evolution of sate-owned companies was disappointing, as many of the IMF-monitored firms are still registering losses and accumulating arrears, with slim chances of a recovery.

According to the EUR13 billion agreement signed with the IMF, CFR, CFR Calatori, highway administrator CNADNR, subway company Metrorex, CFR Marfa, Electrificare CFR, land improvement administration ANIF, thermal power generator Termoelectrica, coal company CNH and power plant operator Electrocentrale Bucuresti have to reduce losses and arrears.