By selling the significant stakes it still holds in itscompanies on the stock market, the state can plug the holes in itsbudget and also offset the domestic currency depreciation trend,thus avoiding a new loan from the IMF.
The recent experience of the floatation of a petroleum giant inan emerging country, Brazil's Petrobras, reveals that a publicoffering can generate, besides money to the budget, an appreciationof the exchange rate. The Brazilian state sold 70 billion dollars'worth of Petrobras shares and while the offering was stillstanding, the country's currency significantly appreciated, becauseof the high demand from foreign investors, making the central bankbuy foreign currency to balance the exchange rate.
In 2009, the state borrowed 20 billion euros from the IMF, theEuropean Commission and the World Bank, with the main reason forthat being that the money was needed for the National Bank to boostits foreign currency reserves to defend the exchange rate. Part ofthe money later went to the state budget to pay pensions and publicsector's employees' salaries.
At the same time, Poland sold several billion euros' worth ofshares on the stock market and did not need any loan from the IMF,and the depreciation of the zloty was lower than the RON's.
The Economy Ministry promised to sell about 10% in Petrom and15% in Romgaz, Transgaz and Transelectrica each and could collectalmost one billion euros from these stakes alone. Although theGovernment did approve the sale of these shares, the EconomyMinistry has not started the procedure to choose a broker at least.On the other hand, the President announced that Romania would signa new arrangement with the IMF next year.
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