The Government approved last week the state’s participation in increasing the Romanian Post’s share capital by RON 170 million (EUR 36.5 million).
The money from the capital increase will return to the state budget as the company would use them to pay its historic debts.
The Communications Ministry holds 75% of the Post’s shares while investment fund Fondul Proprietatea owns the remaining 25%.
The Government has been looking for ways to capitalize the Post in recent years but Fondul Proprietatea opposed the capital increase, which would have reduced its stake. Fondul Proprietatea needs to come up with close to EUR 12 million worth of capital or have its stake reduced to 6.5% of the company’s capital.
The Romanian Post has a yearly turnover of over RON 1 billion (EUR 220 million), 5,600 units throughout the country and 24,000 employees. The company was on a loss for many years but turned to profit in 2016.