Termoelectrica under financial monitoring

The Government has discussed an emergency ordinance draft according to which Termoelectrica SA would be put under special financial monitoring, Maria Manolescu, State Secretary with the Finance Ministry told Ziarul Financiar.

“Both Termoelectrica head unit and the subsidiaries will be very tightly monitored. We have to know exactly the money inflows and the destination of the outflows,” Maria Manolescu said.

According to the ordinance draft, the revenues and the resource use will be monitored, as the company is considered a major factor for economic arrears.

“The units with which Termoelectrica has contacts are complaining about not receiving the money they are owed. Meanwhile, we strive to provide financing for the fuel imports. We have to see what is going on with Termoelectrica money,” Maria Manolescu said.

Termoelectrica officials told Ziarul Financiar that they had known nothing about this project, but had expected such a measure, given the company’s financial difficulties.

According to the company’s revenues and expenses budget, Termoelectrica financial losses will stand at more than 8,500 billion ROL (255 million dollars) this year, while total cumulated losses should amount to some 13,000 billion ROL.

By putting Termoelectrica under special surveillance, the Government hopes to control the financial situation of one of the largest arrears generators in the economy and make sure that Termoelectrica does not jeopardise the Government’s meeting the performance criteria included in the agreement with the IMF.

The technical memorandum originating the stand-by agreement stipulates that Termoeletrica should reach a minimum rate of cumulated revenues of 95% by December 31, 2001 and 97.5% by December 31, 2002.