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Letter of intent with IMF: Romanian authorities promise to reform companies working in energy and transports

The Romanian authorities pledge to deeply reform state-owned companies, especially those working in energy and transports, according to the letter of intent agreed upon with the International Monetary Fund (IMF).

The IMF on Wednesday published the Romanian Government's letter of intent and the memorandum of understanding between the two sides.

In order to improve the governance of the state-owned companies we shall ban the extension after January 1, 2012, of the management contracts existing in the state-owned companies and for the largest companies the process meant to select candidates for the key managing positions (managing director and financial manager) will be carried out by human resources companies that are famous at world level. Current managers too can participate in the selection process, reads the above-mentioned document.

It also presents the measures to be taken by the Government in the field of transports.In road transports, the National Company of Motorways and National Roads in Romania (CNADR) will increase its revenues in 2011 by removing or renegotiating the low performance contracts . They will pay the CNADR arrears (currently amounting to 737 million lie) deriving from the investment projects by the end of August.

In passenger railway transport the operational losses will be cut by 25 percent by the end of 2011 by territorial restructuring, by cutting the number of employees, by closing the low performance routes and cutting the number of trains generating low revenues.

The legislation will be amended in order to make it possible for the Metrorex and RATB public corporations to increase prices above the inflation rate in keeping with the strategic plan stipulating that these companies should be able to cover their current expenses from revenues and capital expenses from subsidies. Metrorex will lower its maintenance costs by 30 percent at least by late 2011, reads the above-mentioned document.

(Country's Policy Intentions Documents -- Romania: Letter of Intent and Technical Memorandum of Understanding, June 9, 2011

http://www.imf.org/External/NP/LOI/2011/ROU/060911.pdf)

Sursa: http://www.actmedia.eu

Tags: transports companies romanian intent letter

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