Monitored Romanian Cos’ Budget Debts Up 34% In 2010, At RON6.86B

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In 2010, CNH had RON4.13 billion debts to the state budget, up 10% from 2009, while CFR had to pay RON1.81 billion debts, triple from RON530 million in the previous year.

The total value of the arrears, namely RON6.86 billion, represents the companies' back payments cumulated to the four main components of the general consolidated budget.

According to the EUR13 billion agreement signed with the IMF and the European Commission, railway companies CFR, CFR Marfa and CFR Calatori, highway administrator CNADNR, subway company Metrorex, Electrificare CFR, land improvement administration ANIF, thermal power generator Termoelectrica, CNH and power plant operator Electrocentrale Bucuresti are subject to monitoring.

The debts to the state budget of Electrificare CFR reached RON506 million in 2010, up 43% on the year.

The arrears of CFR Calatori rose to RON80 million in 2010, from RON50 million a year earlier, while CFR Marfa's debts slightly increased from RON275 million to RON282 million.

On the other hand, the state budget debts of Termoelectrica decreased to RON48.4 million in December 2010, from RON61 million a year earlier.

The debts of the first 10 largest debtors in Romania totaled RON8.36 billion in 2010, of which around half to the state budget.

An IMF delegation is in Bucharest until February 8, to evaluate Romania's compliance with the terms of a EUR13 billion stand-by loan and to negotiate a follow-up, precautionary deal, after the current arrangement expires in May.