Romania to sell only 20% of freight railway company CFR Marfa minister.

By bne IntelliNews January 14, 2013
Romania will sell only 20% of its state freight railway company CFR Marfa but only if the country's security council, CSAT, endorses the move, transport minister Relu Fenechiu was quoted as saying by news agency Agerpres. Romania decided to sell 100% of CFR Marfa last year as part of state sector reforms agreed with the IMF, but CSAT rejected the proposal on grounds that the company has a strategic importance. The company is running losses and Fenechiu explained that this is exactly why it should not be privatised at this moment. The company's activity should be streamlined by a new management and only afterwards it can go for sale, Fenechiu argued. CFR Marfa held a 61% share on the railway freight transport market in H1 of 2011. But its profitability was severely hurt by the lower volume of activity during the recession years.

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