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October 28, 2020

Anca Boagiu warns railway companies might go bankrupt

The continuation of the restructuring program is the railway companies’ only chance, the minister of Transports, Anca Boagiu, stated, yesterday, after a meeting with the leaders of the railway companies’ trade unions, HotNews reports. Boagiu added that 2000 has been the last year in which these companies did not report losses. She explained that she called for the modification of the company executives’ term contracts so that the latter may be directly accountable for meeting the efficiency targets. On the other hand, the restructuring will be conducted so as to meet, also, the targets set in agreement with the International Monetary Fund and the European Commission.

The minister added that they would draw up, alongside the trade unions, a wider program to bring the companies back on track, laying stress on investments, cutting expenditure and a more effective collection of revenue. “Investments presuppose, first and foremost, speeding up the absorption of European funds in the railway system. We won’t manage to restore the companies to their condition in 2000 (…) but this efficiency plan is the only chance we’ve got to save them,” the minister Anca Boagiu stated.

A couple of days ago, the Minister of Transports called for the modification of the term contracts of the CEOs of companies under the ministry’s authority. In her view, this is a way to put an end to the situations in which the companies contracted “aberrant” expenses or failed to join in the effort to reduce public expenditure.

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