Debts Of Former Govt Need To Be Paid, Thousands Of Cos Might Go Bankrupt – Romanian Deputy PM

“Unfortunately, we must pay the EUR2 billion we inherited from those before us, which are not exigible expenses. The risk of the bankrupt of thousands or tens of thousands of Romanian companies is real,” Nica said.

He added, for this reason, the Executive is making “desperate efforts” to pay these debts in January and February. “It’s not out of compassion for the former Government that left us these debts, but for these firms, which are guilty of nothing,” Nica said.

Nica said the Government decided in January and February to pay the debts worth EUR2 billion registered by the Tariceanu Government, if not, then 100,000 people run the risk of going bankrupt.

We would be in a far better situation if we weren’t forced to pay the EUR2 billion debt of the previous Government. If we do not pay these debts, we are dooming to bankrupt a hundred thousand people,” he said.

“We must pay these debts, as the people who have completed works, built schools or rehabilitated roads are not to blame for the lack of responsibility of the former Government, who has not paid their bills,” Nica said.

The Ministry of Public Finance said a week ago it will pay by the beginning of March the invoices that were issued and not paid by the end of 2008, amounting to RON3.05 billion, which include only the works that were registered and invoiced.

The first installment of RON1 billion will be paid at the end of January, RON1 billion in February and the remainder in March.

The Government will not fully pay the bills it owes since last year, but will cover the difference between their value and the debts owed by suppliers to the state budget, following an operation of compensation and correlation, governmental sources said.

“(…) If the unpaid bill is of RON10, and the respective company has in its turn a debt of RON2 to the state budget, then the state will pay RON8 (…)”, government sources told MEDIAFAX Friday.

The bills will be paid in full only to firms that have no debts to the budget.