Romanian Local Auth To Require Blocked Accounts For Electroputere Craiova Over EUR1M Debt

Tax department director Ioan Vacariu said Thursday that one of the mayoralty’s problems is collecting receivable from debtors, among whom Electroputere.

Vacariu said Electroputere should pay a debt of EUR1 million by the end of March, or the mayoralty will summon it to pay and then require that the company’s accounts be blocked.

He added local authorities and Electroputere Craiova officials agreed on a payment schedule, which the company failed to observe.

"Electroputere was supposed to pay over 14 million lei (EUR1=RON4.2785) by the end of last year. They paid some RON8 million, but counting penalties for each day of delay, they now have a debt of over RON11 million,” Vacariu said.

Electroputere Craiova is owned by Al-Arrab Contracting Company Limited, which took over 62.8% of its capital in November 2007.

At the end of last year, Electroputere Craiova was the seventh largest debtor to the country’s general consolidated state budget, owing RON148.1 million.