“Slippages in the privatizations calendar continued, after several attempts have failed for reasons that could have been avoided… We plan to focus on the companies with the biggest economic impact, which are more likely to attract investors,” IMF mission head to Romania, Jeffrey Franks, told a news conference.
Franks said top priority privatizations in Romania should include hydropower generator Hidroelectrica, nuclear power plant Nuclearelectrica, natural gas producer and transporter Romgaz and Transgaz (TGN.RO), respectively, as well as airline Tarom and rail company CFR Marfa.
The privatization of chemical company Oltchim SA (OLT.RO) is also important, he added.
Under a EUR3.5 billion loan agreement with the IMF, the Romanian government has pledged to sell minority stakes in several key state-run companies in 2011 and 2012, including leading oil company OMV Petrom (SNP.RO), copper producer Cupru Min and energy producers Hunedoara, Oltenia and Elcen.
In 2011, Romania has launched a secondary offering of around 10% in Petrom, but the offer was withdrawn after subscriptions fell short of the government’s 80% target.
The authorities also canceled a public auction for the sale of 100% in copper producer Cupru Min, saying the winning bidder, Canadian-based Roman Copper Corp., refused to accept a series of terms.
A series of other privatizations have been delayed or rescheduled to an unspecified date.