“CFR Marfa should no longer incur losses and should be better managed,” said Isarescu, when asked whether he considers CFR Marfa should remain state property or authority should speed up its sale.
Isarescu explained he sees privatization as a way out of impasse and a way to escape a vicious circle in the case of large state monopolies.
“They need investments. The state doesn’t have money for investments. The company is running losses. Losses make the situation even more difficult. I’m not in favor of privatization of state monopolies for the sake of privatization. I believe this is an attempt to escape a vicious circle and CFR Marfa is obviously in a vicious circle,” the central bank head added.
The privatization of CFR Marfa has been under intense scrutiny lately as President Traian Basescu calls for a speedy sale, while Prime Minister Victor Ponta has required the approval of the country’s top defense council CSAT. The strategy for the privatization of CFR Marfa was approved by the council on February 5.
The defense council assembled Friday but issued no new decision regarding the privatization of state-owned freight railway carrier. The strategy for the privatization of CFR Marfa was approved by the council on February 5.
The Government on July 24 approved the contract by which private railway company Grup Feroviar Roman (GFR) takes over 51% of CFR Marfa, which offered EUR202 million. GFR also committed to invest RON900 million in the company and another EUR1.5 million in environmental projects.
According to the Government, a lack of stance from the defense council blocks the privatization process and will lead to the appointment of private management and restructuring of the company.
President Basescu said Monday the Government should take all necessary steps to streamline the privatization process and publish the government decision on the sale in the Official Gazette.