Romanian Industry Seeks State Funding To Stay Afloat

Romanian industry in the past three months asked the state for funds or bank guarantees and other funding of almost one billion Euro, of which some 123.3 million Euro went to the automakers.

The latest call for help came from Avioane Craiova aircraft maker, which asked the state to give it 14 million lei saround 3.2 million Euroţ or else risk filing for the bankruptcy procedure, as it has no funds to pay partners or employees. The company was in the red with 7.6 million lei, in 2007, and with 16.39 milion lei, in 2008, while revenues dropped from 25.1 million to 19.27 million lei, year-on-year.

Chemical works Oltchim Ramnicu Valcea asked for its 155 million Euro debt to be converted into shares. It recorded 225.64 million lei in loss last year, which was over two times more than the loss in 2007.

Ford asked last December the Romanian government to grant state guarantees to a 400 million loan from the European Investment Bank, which it wants to invest in the subsidiary in Craiova, south-western Romania.

Also late last year Renault asked the state to back a 100 million Euro loan from EIB, which it wanted to invest in its Dacia subsidiary and the testing center at Titu.

Cefin Romania asked for financial help worth 23.2 million Euro to develop a national IT integrated network of centers monitoring the roads, while Dunarea company asked 18.2 million Euro to develop its Victoria Hotels network.

 • Translated by Anca Păduraru