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Romania Privatizes Freight Division of National Railways

Published: February 6, 2013; 18:32 · (Vindobona)

Romania´s government sells a 51% stake in CFR Marfa, the publicly held rail freight company.

Romania Privatizes Freight Division of National Railways / Picture: © Vindobona.org

Until June 2013, Romania wants to sell the rail freight company. The High Security Council (CSAT) has approved the privatization today, Minister of Economics Daniel Chitoiu said. However, potential buyers must pay a deposit of € 10m. This corresponds to 17% of the nominal value of CFR Marfa´s shares. The deposit is mainly due to the fact that the privatization of the chemical group Oltchim has failed. After the investor has acquired the chemical group, he became insolvent.

In January, the government underlined that the sale of the CFR Marfa has highest priority. An investor will be found within the next six months, the government assured. In total, the government expects to realize proceeds of € 270m. The first offers are expected to be submitted in May. Romania´s Minister of Infrastructure Relu Fenechiu regrets the sale of CFR Marfa. According to him, the company is a “strategically important asset.”

In November, EBRD criticized that Romania´s reform progress is too small. EBRD underlined that the government should implement more economic reforms in order to strengthen the Romanian business location. Moreover, EBRD promotes more privatizations. Besides that, the IMF hat put pressure on Romania to accelerate the privatizations.

The publicly held shares in Transgaz will be sold until the end of April. Regarding the insolvent chemical group Oltchim, the Romanian government tries to find a solution with the creditors.

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