Romania's cargo railway company CFR Marfa to pass EUR 300 mln assets to new set up company

The state cargo railway company CFR Marfa, which entered insolvency in April after five years of pre-insolvency status, plans to diminish its dues by 32% to RON 3.1 billion (EUR 620 million) during this year by the transfer of RON 1.5 billion (EUR 300 million) of assets to the newly set up company Carpatica Feroviar, according to the budget of the company inked by the Transport Ministry and quoted by News.ro.

The Employers' Organization of Private Railway Companies in Romania (OPSFPR) has filed a new complaint with the European Commission, claiming that the government is using newly-established company Carpatica Feroviar in a scheme aimed at avoiding the recovery of incompatible state aid from insolvent state company CFR Marfa.

According to OPSFPR, Carpatica Feroviar is not selling its assets under transparent procedures.

In the complaint filed, the organization requests the European Commission to investigate the failure to comply with the Decision to recover incompatible state aid granted to CFR Marfa; to block the transfer of viable assets to Carpatica Feroviar, given the lack of a transparent procedure and the impact on the market; to analyze the impact of the allocation of EUR 300 million from public funds, which contravenes the principles of efficient use of resources and European legislation on state aid; and to request immediate measures to restore fair competition conditions on the Romanian railway transport market.

(Photo source: Inquam Photos/George Calin)