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December 1, 2021

Government approves canceling of CFR debts

The government has approved the start of the procedure through which the RON 3.99 bln that the Romanian Railways Company (CFR) owed to the state at the end of last year will be canceled by being converted into shares, Mediafax informs. The emergency ordinance that stipulates this operation was approved yesterday. The ordinance was also on the agenda of the Cabinet last week, but the decision was postponed after consultation between the Prime Minister and Minister of Transport. The deletion of debts will be made by derogation of current law which regulates the governing public debt.

Electricity 5 pc more expensive from mid-year, according to IMF

The International Monetary Fund (IMF) has published the Letter of Intention agreed with Romania’s Government after the January-Februry, fourth, assessment Mediafax reports.The document’s novelty elements include measures aimed at increasing the efficiency and the privatization of state-owned companies. The Letter was drafted after the latest IMF evaluation mission of January-February.Government reaffirms its commitment over the liberalization of the energy and gas market. Regulated electricity charges to household and non-household consumers will rise by 5 pc halfway through this year. The regulated prices will be eliminated in early 2014 for non-household users and gradually during 2013-2017 for household consumers.Government will lay out by late April a draft resolution stipulating, among others, a road map on the gradual elimination of regulated gas charges and the measures seeking to protect vulnerable social categories.Also, Government must find financing solutions by the end of April for the Valcea-Valcele railway, even if they involve government backing. Also, railway operator CFR must strike by late June an agreement with Belgian construction company Eurostation for the upgrading of the Bucharest North Station, to operate by late July the Bucharest railway hub and to increase by 10 pc revenues from rented assets. Also in the public transport area, Metrorex should set up by the end of June of new operational programs adjusted to market demand and to increase revenues by introducing into circulation 16 new underground trains from early next year onward.The IMF also called on Government to return to the Boeing Company the 737-800 aircraft rented by Tarom four years ago, or to bring the rent payment to market level, a procedure to have been concluded by late March.

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