Romanian refrigerators stuck at Libyan border

The conflict in Libya could be beneficial for recovering the debt that the country owes to Romanian companies since communist times, according to ‘Evenimentul Zilei’ daily. Nevertheless there will be the need for a period of stabilization following the emergence of a new, democratic regime.

The debt was in fact one of the subjects that President Traian Basescu wanted to tackle in his talks with Libyan leader Muammar Gaddafi during their 2006 meeting. According to Ministry of Public Finance data, Libya owes Romania USD 45.568 M and LYD 22.93 M (approximately USD 18.12 M), sums that come from foreign trade and economic cooperation operations that took place prior to December 31, 1989.

The largest debt is owed to Romtehnica (USD 39.25 M) and Arcom (LYD 16.6 or approximately USD 13.5 M). On the other hand, Libya has been an extremely profitable market for some exporters in recent years. In 2010 Romania reported trade surplus with Libya for the first time – exports of USD 59 M against imports of USD 46 M. For example, Arctic’s (one of the main exporters to Libya) business on the Libyan market has been growing constantly in the last three years. “From what I’ve heard there are currently several lorries with refrigerators stuck at the border with Libya,” a representative of Arctic, a company owned by Turkey’s Arcelik, stated. He added that delays in contract payments have not been reported yet.

Related posts

BCR sees credit activity increase in 2011

Nine O' Clock

Daniel Daianu, favourite for top position with financial watchdog ASF

Nine O' Clock

PM Victor Ponta presents Romania’s interest in stimulating American investments in energy

Nine O' Clock

Leave a Comment