Monday, May 9, 2011

AP: IMF: Romania to privatize loss-making companies

BUCHAREST, Romania - An International Monetary Fund official says Romania will shut, restructure or privatize some state-owned energy and transport companies to keep their losses from weighing on public finances.

Jeffrey Franks, who heads the IMF mission to Romania, said Monday that the companies targeted are gas and nuclear energy groups, the national railways, road transport and national carrier Tarom.

Their losses are hurting government finances and, ultimately, economic growth.

Romania's economy is predicted to grow 1.5 percent this year following two years of decline.

Frank says the state will remain the main shareholder of strategically important companies.

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