ECONOMY
The Authority for State Assets Recovery (ASAR) will have to sell by year-end some 133 state-owned companies or else these will have to file for bankruptcy
CATALIN BUDESCU
No Company To Be Nationalized Back
"No matter what, no company which was privatized will go back under state ownership. The state will not pay even one more penny for these companies," stated Ursache.He said that the newly adopted legislation allows for a quick transfer to other investors of shares belonging to privatized companies. Ursache also stated that ASAR will succeeded in cashing in and bringing back to state coffers the bad loans left behind by Bancorex and the Banca Agricola banks, which amount to over 800 million dollars.
The non-performing credits (or sheer debts to the state budget) stayed at four billion dollars in 1999, when the company preceding ASAR was created.
Where To, the Aro Company?
The privatizing of Aro Campulung car maker, which was bought by Crosslander, is under the scrutiny of the Court for Public Accounts. The court looks into the privatization deal signed last year. "One thing is certain, if Crosslander will not pay the October installment according to the privation deal, we will call the deal off and annul the privatization," said Ursache.
Litigation Is On
The American company Noble Ventures, which held the majority stake in the CS Resita steel maker, raised at 350 million dollars its claim for reimbursement from the Romanian state. Romania called the deal off following massive trade-union protests. Nobel Ventures filed a suit against the Romanian state with the Court for Arbitration of the World Bank.
State Funding to Bail Out Companies Is Worth 3.1% of the GDP
Lat year the Competition Council awarded state funding to help bailing out companies, which amounted to 3.1% of the GDP. "During 2001 that state funding was the highest, staying at 6.3% of the GDP; some 49% of that money went to state-owned companies," said Jozsef Nemenyi, councilor with the Competition Council. He also said that EU countries use 1.5% of their GDP to bail out companies on the brink of bankruptcy, and that Romania tries hard to bring its number down to 2%, by 2007, when Romania is supposed to join the EU.Translation: ANCA PADURARU