According to recent data, the state-owned railway companies have debts of 1.2 billion lei (EUR268.8 million) to the energy suppliers, plus penalties of RON900 million.
The loan for CFR Infrastructura, mentioned in the latest letter of intent to the International Monetary Fund (IMF), will be provided as a “bridge loan,” to be replaced by the end of October with one guaranteed by the state.
The Government also promises the IMF and the European Commission that CFR will implement cost-cutting measures and take steps to raise its income, in order to ensure its financial viability in 2013 and beyond.
Furthermore, the Government pledges to hire consultants to appoint private management to CFR SA and CFR Calatori by the end of September, and to lease or close down around 550 km of railway.
In April, the Government approved the conversion of CFR SA’s debts, which stood at RON3.99 billion last year, into shares. A similar operation was authorized at the end of 2006, just before Romania joined the European Union, for 34 state-owned companies, including CFR SA, but the European Commission has still not approved the Government’s ordinance.
In 2008, the Ministry of Transport proposed converting CFR SA’s debts to Electrica into shares, but this plan was rejected by the Ministry of Economy and Finance, which argued that the transport operator is not among the list of companies to be privatized, meaning the shares could not be sold later.
The Government has no plans at the moment for CFR’s privatization, only its restructuring. (EUR1=RON4.4641)