The Romanian Post will be reorganized into regional profit centers, according to a memorandum the Government approved yesterday.

Local managers will become more responsible in managing the budgets and attracting funds to develop the postal units in those regions. This is one of the measures included in the five-year strategic plan, which aims to revive the postal operator’s activity.

The Romanian Post should also use more efficiently the annual funds received from the Universal Postal Union (UPU), according to the memorandum. The company has received about USD 200,000 every year from UPU for investing in equipment such as scanners, scales, bar readers. Despite this, the postal operator has never used these funds.

The Romanian Post should also renegotiate the current contracts with companies, reads the memorandum.

The company has a yearly turnover of over RON 1 billion (EUR 217 million). The Communications Ministry owns a stake of 75% in the postal operator whereas investment fund Fondul Proprietatea has a 25% stake.

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editor@romania-insider.com