The loan will be granted for five years, including a grace period for the first two years. The interest rate will be equal to the central bank’s key rate plus four points, says a draft emergency ordinance drawn up by the Ministry of Transports.
The act’s explanatory note says Metrorex’ budget for the year does not provide funds for maintenance between August and December, worth around RON75.96 million, without VAT. Unless Metrorex pays its debts to Alstom, the French company might charge penalties and ultimately stop maintaining the trains, halting traffic.
Alstom Transport Romania, a branch of French company Alstom, signed a EUR240 million contract with Metrorex in 2003 for 15 years. The contract was financed by foreign financial institutions for the first three years of its run and has been funded by the state budget since 2007.
In 2008, the subway operator’s debts to Alstom amounted to RON55.04 million, without VAT. They were paid the next year from state subsidies, but Metrorex incurred new debts worth RON116.48 million (without VAT) in 2009. Last year, the operator paid RON42.53 million (without VAT), but incurred a further RON61.9 million in debts, in addition to the RON73.95 million remaining.
Alstom has taken legal action against Metrorex to recover these debts. The two companies are currently renegotiating the contract.
(EUR1=RON4.1342)