Romania's Government doesn't plan to privatize state-owned airline Tarom anymore and has not included this company in the letter of intent for the new financial agreement with the International Monetary Fund, according to newswire Mediafax. Other state companies, Oltchim, Turceni, Rovinari and Craiova electric compounds were still proposed for privatization. The state plans to sell only a minority share package in Tarom.

The previous letter of intent with the IMF included Romania's pledge to find a strategic investor for Tarom by the end of April. Romania wil also continue the sale of minority share packages in Petrom (10 percent), Transelecrica (15 percent), Transgaz (15 percent) and Romgaz (15 percent).

Tarom's projected revenue and expenses this year will be equal, at EUR 401 million. Last year, the airline’s budget provided for EUR 387 million revenues, with almost equal expenses. The company plans to break even this year. In 2009, Tarom projected around a EUR 176,000 profit, but the net result was actually around a EUR 21 million loss.

editor@romania-insider.com