GFR recovers the guarantee paid for CFR Marfa

Romanian Railway Group (GFR) will recover the EUR10 million guarantee paid during the privatization procedure of CFR Marfa that eventually failed to be carried out. Also, the EUR20 million escrow account has been unblocked, too, stated Ramona Manescu, Romania’s Minister of Transport.

Recently, following the official confirmation of the failure to complete the privatization of CFR Marfa, Ramona Manescu declared that the Privatization Commission was considering  to possibly keep the EUR10 million from the company owned by Gruia Soica.

The Minister, who attended a conference on transport themes organized by the United Kingdom Embassy, also confirmed that the privatization will start over effectively upon establishing the steps to be followed.

‘CFR Marfa, as you know, continues the privatization procedure. These days we set meetings with our IMF and EU Commission partners and we will discuss the schedule. (…) This week, from tomorrow on we will meet and discuss each point of this schedule, so that I will be able to present the schedule agreed in principle during the Government meeting at the end of the week.’ said Manescu who mentioned that Cristian Ghibu, though, the Secretary in charge with the procedure will not be handling it any more.

Romania’s Government did not manage to complete the privatization of CFR Marfa, after other failures with Oltchim or Cuprumin. The fiasco became official on Monday, October 14, the last day when GFR had the possibility to pay the EUR170 million due for finalizing the procedure, as per the contractual details. GFR refused then to make the payment because of some conditions the Ministry did not complete, however, in the end both parties involved exonerated themselves, claiming that all the requirements were duly completed.