Romania’s state-owned railway company CFR SA will close 20 percent of the country's railroad network, about 4,000 kilometers of railway lines, unless it finds investors to ensure their maintenance, reads the letter of intent agreed upon by the Government and the International Monetary Fund.

In the draft letter of intent, the railway company had committed to close 6,000 kilometers of railway lines (30 percent of the country's network) unless the state managed to outsource their maintenance through public tenders.

The final letter of intent reads CFR SA will close another 1,000 kilometers of railway lines by end-August to enhance the company's financial situation.The company plans to reduce losses by 25 percent and register no more arrears in 2011.

Mediafax