Wednesday, January 18, 2012

Romania to sell 10 pct stakes in power producers

Wed Jan 18, 2012

BUCHAREST Jan 18 (Reuters) - Romania's government approved a plan to sell 10 percent stakes in state-owned power producers Hidroelectrica and Nuclearelectrica, it said on Wednesday.

Romania completed a 20 billion euro bailout led by the International Monetary Fund earlier this year and has a new deal, under which it pledged to sell small stakes in transport and energy firms to increase efficiency and raise revenues.

But the failure to sell a 10 percent stake in oil and gas group Petrom last year raised doubts over whether it could sell other holdings, particularly as markets have since fallen due to the euro zone debt crisis.

An IMF mission will be in Bucharest on Jan. 25 to review Romania's progress in meeting conditions of its aid deal and it is likely it will recommend steady progress with selloff plans.

(Reporting by Sam Cage; Editing by Luiza Ilie)

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