The European Commission (EC) has decided that the Romanian Government’s decision to write off EUR 400 million worth of debt that state-owned cargo railway operator CFR Marfa owed to the railway infrastructure company CFR, also controlled by the state, in 2013, represented illegal state aid, Agerpres reported.

The EC also asked the Romanian state to recover the money, Bogdan Chiriţoiu, president of the Competition Council, said at a conference on Monday, November 18.

"We know that the decision has been written and will be communicated officially by the end of the year. The company received aid for privatization, in 2013, when the debts were written off. However, it has neither recovered financially, nor has it been privatized. Instead, it has continued to accumulate losses and its situation is obviously not sustainable," said Chiriţoiu.

He specified that the state would have six months to recover the money after officially receiving the EC’s decision.

There are two options, Chiritoiu commented: either CFR Marfa transfers some of its assets to CFR to compensate the EUR 400 mln debt or the company is dismantled like, for instance, bankrupt chemical plant Oltchim has been dismantled, the assets are sold and the debtors recover their money.

In any case, Chiritoiu assured that the workers will remain employed since the rail freight transport activity must continue.

(Photo: Consiliul Concurentei Facebook Page)

editor@romania-insider.com