Finally. After ten years of delays and laments, the authorities are seriously delving into capitalism. The biggest loss-making enterprises, often quoted as an example of the Government's lack of reforming will, are going to be liquidated. Aro, Siderurgica, Roman and Rocar will no longer survive on the state's money.
Steel mill Siderurgica Hunedoara, carmaker Aro Cåmpulung, truck producer Roman Brasov and bus manufacturer Rocar Bucharest may soon enter voluntary liquidation, Privatisation Authority sources said yesterday.
"This is one step in the right direction, but we should see them liquidated first. This is an old recommendation, which is only now being applied. If it is enforced, we may safely say this a small victory in the transition towards a market economy, a defining moment. I could liken it to the 1997-1998 period, when mines were closed down," said economic analyst Matei Paun, former broker on Wall Street.
"The four companies are in an almost dramatic shape. Although no official decision has been made yet, these companies are increasingly likely to enter voluntary liquidation," the quoted sources said.
According to the same sources, the four companies' privatisation chances are zero to none, as they have been repeatedly put out for sale over the past few years, but the Privatisation Authority received no bids.
The voluntary liquidation solution is being discussed by the Romanian authorities and the International Monetary Fund delegation these days. The IMF's chief-negotiator for Romania Neven Mates is heading the delegation.
Finance minister Mihai Tanasescu last weekend said the Privatisation Authority should come up with a solution for the big enterprises that have to be privatised or liquidated, by August 15.
"I can tell you that the privatisation Law was endorsed for Tractorul Brasov. As for Aro and Roman, unless their problems are solved by August 15 at the latest, we must come up with very clear measures," the Finance minister said.
According to the Privatisation Authority, Siderurgica Hunedoara has debts worth $260m, as the company incurs daily losses of $500,000.
Aro Cåmpulung logged about $3m losses in the first four months of the year, whereas turnover stood at $7.1m. The company reported $30m losses last year.
Another company likely to enter voluntary liquidation, Rocar Bucharest, lost 35bn ROL in the first four months of the year and ended 2002 with 150bn ROL in losses. The company has sold no buses this year. According to the Privatisation Authority, Rocar has no privatisation chances.
bogdan.neagu@zf.ro ; ionut.bonoiu@zf.ro
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
