Rompetrol Might Lack Funds To Repay Whole Debt To Romania

Netherlands-based The Rompetrol Group N.V must reimburse Romania 2.4 billion lei (EUR1=RON4.0923) by September.

However, the government estimated the oil company will only be able to pay half the amount this year, according to a variant of the convergence program for 2009-2012, drafted in February.

„The basic scenario for 2010 includes a complete capitalization of Rompetrol’s bonds, amounting to RON2.4 billion. However, due to the company’s announced liquidity shortage, the sum might drop to RON1.2 billion (0.2% of the gross domestic product),” the document, obtained by MEDIAFAX, noted.

Back in 2003, the Romanian executive adopted an ordinance stipulating that Rompetrol’s outstanding debt of over $600 million be converted to seven-year bonds.

Rompetrol is fully owned by Kazakhstan-based integrated oil and gas company KazMunayGas National Company.

In July last year, KazMunayGas announced negotiations with several international lenders to ensure financing for its outstanding debt to Romania.