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.
Transport Ministry will hold Tuesday a public debate on the Government decision draft to approve the company’s sale strategy.
According to the normative act draft, the ministry will be 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 will represent 20% of the nominal value of the stake put up for sale, while the participation fee will be 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.