Loading page...

Romanian Business News - ACTMedia :: Services|About us|Contact|RSS RSS


The delegation of IMF, unimpressed with the delay in the privatization process


The delegation of the International Monetary Fund (IMF) was unimpressed with the delay in the privatization process for the airline company TAROM and Romanian Railways Freight (CFR-Freight) company during the talks they had on Monday with the officials of the Ministry of Transports and Infrastructure (MTI).

According to the ministry representatives who attended the talks, the Fund delegation showed unimpressed with the fact that CFR-Freight and TAROM privatization will be done in November, later than it had been scheduled.

The privatization process at CFR-Freight should have been concluded in October 2012, after the company negotiated a scheme to cancel the arrears and scrapped 3,000 wagons, a process set for late August. Publishing the announcement for selling shares should have been done by mid-June.

TAROM privatization was to be done in June and the company should have been listed on the stock exchange earlier in May. The calendar was postponed till November.

The talks held at MTI offices included the private management at the ten companies under MTI, and the Fund officials demanded that this process should be concluded in September.

There will be more than 50 private managers recruited, 10 managing directors and 43 members of the boards of directors.

The ten state-owned companies under MTI for which private managers will be recruited are Romanian Railways company, Romanian Railways Passengers, TAROM, the Public Company of Motorways and National Roads in Romania, Metrorex, the Public Company Airports Bucharest, the Public Company Administration of Sea Ports Constanta, the Public Company Administration of Navigable Canals, the International Airport Timisoara 'Traian Vuia' and Telecommunications CFR company.

Another issue the Romanian authorities must solve is that of CFR Passengers arrears. A scheme to reduce the arrears of up to 300 million lei must be identified by late June, a thing that still needs to be done, as it was set in the memorandum of understanding signed earlier this year between the Government and the International Monetary Fund.

The sixth evaluation mission of IMF for the precautionary agreement with Romania started on July 31 in Bucharest and will be ready on August 13.

The IMF visit will take place in the same time with that of the delegations of the European Commission and the World Bank.

The agreement between IMF and Romania started on March 31, 2011 and is precautionary, amounting to 3.1 billion SDR (3.6 billion euros), representing about 300 percent of Romania's share with the fund.