The debt was accrued mainly as a result of delays in receiving payment for Telecomunicatii CFR’s services rendered to railway companies, says a draft ordinance by the ministry.
Following the budget revision made by the Government in early August, CFR SA will pay Telecomuncatii CFR the sum of RON173.06 million to settle its debts. The remaining RON61.4 million consist of taxes and other budgetary contributions.
As per the agreement with the International Monetary Fund, Telecomunicatii CFR will be changed from a branch of CFR SA into a company under the authority of the Ministry of Transport.
The debt will be converted into equity at par value. Telecomunicatii CFR’s capital is currently RON16.57 million, divided into 6.62 million shares with a nominal value of RON2.5.
(EUR1=RON4.267)