State-owned Romanian Post to set up bank and insurance company, Comm Min says

Romania's Communication Ministry wants the state-owned Romanian Post to set up a bank and an insurance broker, which would allow the company to use its network better and bring additional revenues, according to Communication Minister Valerian Vreme, quoted by Mediafax. The aim of the move would also be to increase transparency and avoid suspicions on the reasons for choosing a certain bank or insurance broker for collaboration. The bank should be called the Romanian Post Bank, while the insurance company, Romanian Post Insurance, according o a draft law from the ministry. The Post is also to reorganize its regional centers, cancel seven of its 11 subsidiaries in order to reduce costs with staff and increase revenues. The Romanian Post runs 7,000 post offices in Romania. The company started talks with four banks to sell simple banking services through its outlets. The Post has 34,200 employees and the restructuring process should affect around 2,000 people. The Romanian Post is owned by the Romanian Communication Ministry, with 75 percent of the shares and by Fondul Proprietatea, with the rest. The company posted EUR 29 million in losses last year, at a turnover of EUR 327 million. editor@romania-insider.com (photo source: Romanian Post)