Romania’s CFR To Get Funds For Debt Payment If Ops Become Efficient–Econ Min

"Starting with August, we are ready to grant CFR RON80 million monthly to pay its electricity debts, on the condition that it pays its current debts. Railway companies must also draw up a program for turning their operations more efficient, from the point of view of the infrastructure, as well as goods and passenger transport," economy minister, Varujan Vosganian, said Thursday.

One third of CFR’s debts, namely RON309 million, should be paid to Romanian state-owned power grid Electrica SA, RON170 million to power supplier CEZ Oltenia while Enel’s units in Dobrogea and Banat must recover EUR90 million from CFR.

The debts of CFR, which is controlled by Transport Ministry, to electric power suppliers will be rescheduled for payment in one year.

Economy Ministry rejected in May the proposals of Transport Ministry to erase CFR debts to Electrica and the state budget by converting them into shares or by assigning money from the reserve fund.

Government approved at mid July the second budget revision this year, granting RON2 billion supplementary funds to the Transport Ministry.