The restructuring of the energy sector, Romanian economy’s biggest arrears maker is no longer a topic of interest for the Economy and Trade Ministry, the main shareholder of the companies in the sector, only. It is Finance Minister’s turn to say this sector needs special attention now.
The Government has to speed up restructuring of energy companies, given that the development of the sector depends on significant public and private financing sources. This is what Finance minister Mihai Tanasescu explained during the “Reindustrialisation of Romania” conference organised by Fin Media on Monday.
“We need both the vision and the high-quality management, which things everybody – and especially the Government members, has to bear in mind. Financing investment needs in this sector can be covered by a mix of the sector’s own resources and private resources,” Tanasescu said during the conference.
“The foreign capital inflow, including that attracted by the privatisation of Petrom and of the (gas and energy) distribution companies, will create a certain operational credibility of the system. We need to go on with the deregulation process. The reforms started years ago have made arrears account for less and less of the GDP from 4% in 2000 to 2.5%-3% at the moment. This decline in budgetary and commercial arrears will maintain and reach 0.5%-1% of GDP in the next few years,” the Finance minister added.
“The energy privatisation is one of the guarantees for the consolidation of this sector,” Tanasescu says.
Petrom’s privatisation began in December 2002 when a consortium comprising Credit Suisse First Boston and ING Barings investment banks was retained as consultant of the Romanian State in this process. The Romanian State is selling 51% in Petrom to a strategic investor, 33.34% of which directly and the rest by a capital increase wherein the investor participates. This privatisation is scheduled for completion by March 31, 2004, with the same deadline set for the two natural gas distribution companies. There are 11 contenders left in the race for Petrom at the moment.
adrian.mirsanu@zf.ro