Buzatu said the government decision draft on CFR Marfa sale strategy had been authorized by ministries of Finances, Administration and Interior, the National Defense, Justice and Competition Council.
“We face state institutions incapacity to meet current challenges and requirements,” he said.
Buzatu mentioned that CFR Marfa privatization is not blocked but only interrupted or suspended.
Romania’s Transport Ministry has pledged to privatize railway freight carrier CFR Marfa by December 2012, according to our country’s agreement with the IMF.
According to the normative act draft, the ministry should have been authorized to sell the entire stake in CFR Marfa through outcry bid, with investors’ prequalification criteria. The ministry could sell as well the state-owned stake as a result of the conversion of debts into shares and the one from compensating company’s debts to CFR SA.
The participation guarantee to the bid represented 20% of the nominal value of the stake put up for sale, while the participation fee was of 5% of the face value of the stake.
CFR SA, which is subordinated to the Transport Ministry, is in charge of managing and maintenance works for the public infrastructure, in 2010 had losses of EUR308 million, even higher than its EUR265 million turnover. The company’s overall debts amounted to 7.6 million lei (EUR1.7 million), according to information published by the Finance Ministry.