The Romanian state and the investment fund Fondul Proprietatea plan to boost the capital of the Romanian Post by RON 50 million (EUR 11.2 million) to pay the company’s debts to the state, in order to list a minority stake in the company on the bourse.

The Government will allocate the largest part of the money whereas Fondul Proprietatea will contribute by a 25% share, said Bogdan Chiritoiu, president of the Competition Council, reports local Agerpres.

The money will cover the fines imposed by the Competition Council as well as the postal operator’s debts to the state. It is not considered a state aid, as long as the contribution of both stakeholders in the capital boost is proportional to their stake in the company. The state thus acts as a private shareholder.

Bogdan Chiritoiu also said that the European Commission opened last year an investigation on the post, under the request of the Romanian state.

“We expect the Post to have to return a certain amount, but we believe it will be a reasonable one. The subventions granted by the Government for the collective layoffs and for pension distribution could be considered too large by the European Commission,” said the Competition Council president.

The state owns a 75% stake in the Romanian Post whereas Fondul Proprietatea owns a stake of 25%.

editor@romania-insider.com