Nazare met Friday in Brussels with Joaquin Almunia, European Commissioner for Competition. One of the topics of discussion was the privatization of rail freight carrier CFR Marfa.
“Privatization would give this company a chance to be saved, given the value of its arrears since 2007. In 2010 and 2011, thanks to the restructuring and optimization plan, we succeeded in reducing CFR Marfa’s losses significantly and give it a shot at survival. However, only through a substantial capital injection, made by selling a 51% stake, can we turn CFR Marfa into a profitable company,” said the minister.
He added that the consulting contract for the privatization will be awarded by the end of April and the entire process will be completed by the end of the year.
CFR Marfa last year posted losses of 133.5 million lei (EUR30.66 million), 67.9% higher than the level approved in its budget, RON79.5 million.
The last year in which CFR Marfa turned a profit was 2007, when it posted RON6.12 million, down 85.7% compared with the previous year, according to Finance Ministry data. The rail operator posted losses of RON169.44 million in 2008, RON341.95 million in 2009 and RON535.26 million in 2010.
The company ended 2011 with debts of RON1.25 billion, RON200 million less than in the previous year, and expects them to increase by 4%, to RON1.3 billion this year.
The Romanian Government pledged in September 2011 that CFR Marfa would be among the first nine state companies to have private management. The state also committed to selling 20% of its stock. A few weeks later, the Supreme Defense Council (CSAT) decided the state would sell over 50% of its stake in the company.
In December, the Government and the International Monetary Fund agreed that CFR Marfa would not have private management, but would be sold to a strategic investor by the end of October 2012, with the support of the European Bank for Reconstruction and Development and of the International Financial Corporation. (EUR1=RON4.3533)