Romania considers indirect support to cash-strapped Hidroelectrica.

By bne IntelliNews June 26, 2012
Romanian state-owned Eximbank considers extending a loan to state-controlled energy firm Hidroelectrica, which entered insolvency last week, Ziarul Financiar daily informed, quoting unofficial sources. According to the report, Eximbank is considering the loan option upon a suggestion of the government. The government, however, has previously stated that no state guarantees would be issued to Hidroelectrica - rejecting rumours about providing such guarantees in order to help banks with provisioning costs. Hidroelectrica's insolvency manager, Euro Insol, assured that Hidroelectrica has the necessary resources to service its debt. The company's cash flow will remain negative this year, the government said in a statement posted on the economy ministry's website. The short term bank loans of Hidroelectrica were RON 1bn [EUR 225mn at current exchange rate] at the end of last year.

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