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

politics-keeps-water-toxic-across-vojvodina-06-28-2016
28 Jun 16

Politics Keeps Water Toxic Across Vojvodina

The summer heat is creating new worries in Serbia's northern province of Vojvodina, where political quarrels are blocking a badly needed overhaul of sometimes toxic water supply systems. 

black-sea-flotilla-fiasco-worsens-region-s-tensions-06-27-2016
28 Jun 16

Black Sea Flotilla Fiasco Worsens Region’s Tensions

Bulgaria’s refusal to join Romania, Turkey and Ukraine in a Black Sea naval patrol has created new tensions in the region and has raised sensitive questions about their security priorities.

22 Jun 16

Balkan Countries Brace for British Vote on EU

22 Jun 16

Census Bombshell adds to Bosnia's EU Woes

Latest News from the Balkans

28 Jun 16

Bosnian Army Commander Oric Trial Stopped

28 Jun 16

Macedonian Protesters Predict 'Hot' Summer

28 Jun 16

Kosovo Customs Earnings Rise Despite SAA

28 Jun 16

Bosnians Shocked as Mujica Accepts RS Award

28 Jun 16

Serbia Ponders Brexit's Impact on Economy