How Bolojan explains the reform of state companies: “Romania can no longer afford the waste and blockages of the past”
Prime Minister Ilie Bolojan presented, in a post on Facebook, a plan to reform state companies, in which he shows that Romania has over 1,500 state-owned companies, many of them generating significant losses.
Prime Minister Ilie Bolojan announces extensive reform of state companies. PHOTO: gov.ro
“We have a clearer picture of state companies and a structured work plan for the next period. Romania has over 1,500 companies in which the state is a shareholder, and many of them operate inefficiently and generate significant losses for the public budget. In total, we are talking about 14 billion lei in losses in recent years.” the prime minister said.
Ilie Bolojan states that the reform starts from the idea of stricter and more efficient administration of public companies.
“This reform starts from the principle that the state must behave as a responsible owner. This means clearly knowing what it owns, why it owns it and what it does next with each company”he explained.
The Prime Minister announced that the reform is starting with a pilot project targeting 22 companies in energy, transport and industry, which he describes as “significant loss and debt areas”.
“Only these accumulated, in a single year, debts of over 4 billion lei and losses of over 1 billion lei”, Bolojan specified.
The Head of Government says that several companies will enter distinct processes of restructuring or recovery, depending on the situation of each one.
“Companies with problems (…) enter a process of operational recovery. We can no longer prolong situations that produce losses year after year”the prime minister said.
He also detailed the measures proposed for different categories of companies: investments in critical infrastructure, independent audits for strategic ones, mergers in case of overlaps and closures “where companies have no future”.
“And where companies no longer have a future, we close them gradually and orderly”said Bolojan, giving CFR Marfă and Petrotrans as examples.
The prime minister specified that the listing of some minority shares on the stock exchange is also being analyzed, with the state remaining the majority shareholder.
“In parallel, a list of companies that could be listed on the stock exchange is being worked on, through the sale of minority stakes. The state will remain the majority shareholder, and control over strategic decisions will be fully maintained“, he explained.
Among the companies targeted are Hidroelectrica, Romgaz and CEC Bank.
The PSD said it opposes the sale of profitable state-owned companies, which it considers strategic, claiming that there was no coalition consultation on the matter.
The reform announced by the Government is to continue in the next period, with new evaluations of state companies and possible restructuring or listing decisions.
Previously, Oana Gheorghiu presented on Thursday the first 22 state companies that the Government considers “black holes” of the economy, companies that have accumulated debts of billions and their possible listing on the stock exchange.
