Ministry of Transport runs restructuring programs

Companies subordinated to the Ministry of Transport that operate at a loss and turn to be a burden for the public budget will face a restructuring program for at least two years.

After discussing with the IMF’s spokesmen at the end of a meeting, Anca Boagiu Minister of Transport, asserted: depending on the result achieved after the restructuring program, companies will receive financial support from government in order to pay their debts.

Anca Boagiu added: ‘according to recent restructuring plans, I shall say that at least some of the companies have set real targets for 2011 and if they manage to reach those targets by means of a more advanced management, in 2012 companies will be able to benefit from a great support from government but only under certain conditions: reform vs. government’s support’.

IMF’s Romanian spokesman, Mihai Tănăsescu, emphasized that companies which run at a loss must follow a restructuring program that should include any measure such as an advanced management, layoffs or denationalization.

‘It has been discussed about all the companies subordinated to the Ministry of Transports. There was made a record of issues that each company has been coping with and certainly, depending on the programs of restructuring that enterprises would offer not only to the Commission but also to the Fund there would be set very clear targets that during the program should be fulfilled’, Mihai Tănăsescu declared.

IMF’s official added that the cover letter will be drawn and negotiated by the end of this week and the IMF delegation will leave the country at the beginning of the next week.


Translated by: Cristina Anamaria Maricescu
MA Student, MTTLC, Bucharest University