State wants to cover Romanian Post’s historical losses before listing

Romania’s Communications Ministry has received extra funds worth EUR 38 million in the recent budget adjustment to increase the share capital of the Romanian Post by the end of this year. “Through this measure, we will cover the historical debt of almost RON 230 million (EUR 51 million) the Post has to the state budget,” said communications minister Delia Popescu, reports local Hotnews.ro. "The ministry plans that, in maximum 2 years after this capitalization measure, the company to be listed on the Bucharest Stock Exchange." According to the Post’s management, this measure will help the company recover its market position and achieve its potential. The company has been forced to direct a significant part of its revenues to paying for its historical debt and the penalties arising from this, which has left it with little resources for investments. The Communications Ministry owns 75% of the Romanian Posts’s shares. Investment fund Fondul Proprietatea owns the remaining 25% and would also have to bring EUR 12.8 million worth of capital to the company to maintain its stake. editor@romania-insider.com