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

Premium Selection

hazy-future-for-serbia-s-copper-giant-04-15-2016
28 Apr 16

Hazy Future for Serbia's Copper Giant

While the longterm solution for RTB Bor remains uncertain, Serbian taxpayers will continue to pay for company mismanagement.

montenegro-grants-citizenship-to-office-manager-of-abu-dhabi-sheikh-04-27-2016
28 Apr 16

Montenegro Grants Citizenship to “Office Manager” of Abu Dhabi Sheikh

Montenegro’s government handed honorary citizenship in 2014 to a Libyan-born “office manager” and his wife in what appears to have been an as yet unsuccessful attempt to lure investment from an Abu Dhabi sheikh, Balkan Investigative Reporting Network can reveal.

Latest News from the Balkans

29 Apr 16

Bosnian Serb Power Rules Dismay Investors

29 Apr 16

"Missing" Man's Return Causes Shock in Kosovo