Romanian State-Owned Companies To Crack Down On Debtors

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The state-owned companies involved will also have to find new solutions to boost revenue and pay their own arrears, according to the letter of intent agreed between the Government and the IMF.

The document, obtained by MEDIAFAX, the list of companies that will crack down on large debtors includes CFR Marfa, Posta Romana, Termoelectrica, Electrocentrale Bucuresti and Societatea Nationala a Lignitului Oltenia.

All these companies need to improve their efforts of large invoice collection, including through the issue of notices and the use of legal measures against companies with substantial arrears.

CFR Marfa, CFR Calatori, CFR will also be forced to include cost standards for public works in all new contracts by the end of June.

Roads administrator CNADNR will also have to introduce cost standards in all new contracts, by the end of September. In addition, the company will have to increase revenue by boosting control over the electronic taxation systems and to diminish costs through the renegotiation or termination of contracts considered detrimental.

Airline operator Tarom will be forced to reduce its costs through contract renegotiations, and to boost revenue through alternative sale strategies and the "optimization" of pricing policies.

Lignite company SNLO will start negotiations with clients, including state-owned companies, by mid-July, in order to collect outstanding invoices.