CFR Marfa privatisation, “the no. 1 priority”

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The deadline agreed with the IMF delegation for completing the privatisation of the railroad carrier is six months, starting February.

The minister of Transportation, Relu Fenechiu said yesterday, after talks with the representatives of the IMF, World Bank and European Commission that the privatisation of CFR Marfa has become “the number one priority,” after he said last week that he will demand this company to be exempted from privatisation, Mediafax reports.At the end of the meeting with the delegation of international financial institutions, which lasted for two hours and half, minister Fenechiu said that on the agenda of talks were the situation of the commitments made by the ministry and the objectives of the institution regarding the increase of the absorption rate of European funds and the restructuring of loss-making companies controlled by the ministry. “This (the privatisation of CFR Marfa) is something I did not want, and I also told this to the IMF envoys. I did not want it because the representatives of the IMF and EC always recommended us to follow successful models, and all the countries of Europe have state-run freight transport companies. Unfortunately, the economic and financial situation of the freight transport company does not allow it to return to profit without a cash infusion made by a private investor,” the minister explained.Asked about the deadline for privatising the company, Fenechiu said the interval starts in February and cannot last “under any form” more than six months. The state will sell 51 pc of the shares in the company.Fenechiu explained that there currently exists no agreement with the IMF over the privatisation of CFR Calatori, and in the case of Tarom the privatisation strategy is being devised now, as a stake of more than 20 pc will possibly be put on sale.Fenechiu added that, although nobody asked him to do so, he proposed a 90-day deadline for appointing private managers to all the companies controlled by the ministry he coordinates, and in approximately three weeks CFR Marfa will receive new, professional managers. The official said Friday for Mediafax that he will try to convince the representatives of the IMF to accept not privatising CFR Marfa.In his turn, Economy Minister, Varujan Vosganian said after the meeting with IMF, that international experts agreed the privatization and listing of ministry portfolio companies to be achieved by the end of April. “At Transgaz procedures should be completed by the end of April (…) In April deadline for privatization,” said Vosganian. He showed that remains in discution energy complexes Hunedoara and Oltenia viability.