Home Page
 
News 20 Nov 12

Romania Cancels Selling Stake in Energy Firm

Poor market conditions force Bucharest to change plans to sell a minority stake in the Transgaz gas company

Marian Chiriac
Bucharest

Romania is to cancel plans to sell a 15-per-cent stake in the gas pipeline operator, Transgaz, as agreed with the International Monetary Fund, citing poor conditions on the stock market.

“The stock market is down. In such conditions, Romania has no interest in carrying out a listing just for the sake of it,” Economy Minister Daniel Chitoiu told the website Hotnews.

Chitoiu said Romania will instead invest in the country’s natural-gas grid and other projects, such as the Nabucco gas pipeline.

Faced with a need for cash, Romania announced early this year that it would sell a minority stake in Transgaz by October, but soon changed the deadline till the end of this year.

The sale is part of a broader government drive to sell minority and majority stakes in energy companies under the terms of a 20-billion-euro bailout loan led by the IMF.

The Economy Ministry also plans to finish selling minority stakes in the utility company Transelectrica.

Romania is largely dependent on foreign borrowing to finance its investment plans. Last year it failed to sell a minority stake in the oil company, Petrom, on the stock exchange.

Talk about it!

blog comments powered by Disqus

Related Headlines:

vucic-inauguration-speech-highlights-regional-cooperation-06-23-2017-2
23 Jun 17

Vucic Inauguration Speech Highlights Regional Cooperation

Serbia’s President Aleksandar Vucic pledged to improve relations with regional countries in his inauguration speech, stating that progress is “impossible without peace and stability.”

23 Jun 17

Agrokor Boss Vows to Tackle Problems in Bosnia

23 Jun 17

Albania Enjoys Calmest Ever Election Campaign

23 Jun 17

Romanian Top Filmmakers Fight for Reform

Premium Selection

albania-enjoys-calmest-ever-election-campaign-06-23-2017
23 Jun 17

Albania Enjoys Calmest Ever Election Campaign

With an almost complete absence of posters and other campaign paraphernalia, Albania is witnessing the most decent and calm pre-election period in its history, experts say.

romanians-top-filmmakers-fight-for-reform-06-23-2017-1
23 Jun 17

Romanian Top Filmmakers Fight for Reform

Hopes of comprehensive change to the film industry – deemed vital for this flourishing field - have suffered another blow after Romania’s parliament withdraw the reform legislation.