Four banks lend EUR 22 mln to state-owned Romanian Post to bolster its work capital

Four Romanian banks will lend EUR 22 million to the state – owned Romanian Post, to cover its working capital, according to Mediafax newswire, quoting company data. The four banks – Banca Comerciala Romana – BCR, Banca Transilvania, CEC Bank and Millennium Bank - will lend the needed funds, after a public tender combined with a negotiation without a participation announcement. The state-owned Romanian Post, holder of the largest network of postal service distribution offices in Romania, 7,100, is majority owned by the Ministry of Communications, with 75 percent of the shares, while the Fondul Proprietatea (Property Fund) holds the remaining 25 percent of its share capital. With plans for the privatization of the company underway, according to the draft of a Romanian government decision issued in December 2012, a change of strategy is to take place to attract private investor contributions to the company’s share capital. The respective investor would become the Post's majority shareholder (51 percent), with the Communications Ministry and the Fondul Proprietatea would share the remaining 49 percent (25 and 24 percent respectively). In 2011, the Post reported over EUR 43.1 million in losses (RON 182.9 million), 50.1 percent more than in the previous year, according to the Ministry of Finance. The company has been on a zero profit for three years, and its turnover for 2011 stood at EUR 298.4 million (RON 1. 26 billion), a little less than 9 percent below the 2010 level. At the end of 2011, the Post's total debts stood at over EUR 131.4 (RON 556.9 million). The Romanian Post had around 32,000 employees at the time. editor@romania-insider.com (photo source: the company)