Prime minister Ilie Bolojan has announced the first steps of a broad restructuring plan targeting Romania’s state-owned enterprises (SOEs), including improved financial discipline, possible mergers or closures, and the potential listing of selected companies on the Bucharest Stock Exchange. The calendar of the restructuring overlaps with a complicated political situation, which casts a shadow over the outcome of the process – seen by some as the origin, among others, of the political pressures exerted by the Social Democrats against PM Bolojan.
The initiative is based on an assessment note prepared by deputy prime minister Oana Gheorghiu, covering an initial group of 22 state-owned companies. The report highlights deep structural inefficiencies across the sector and calls for urgent action.
“Romania has over 1,500 companies in which the state is a shareholder, and many of them operate inefficiently and generate significant losses for the public budget. In total, we are talking about approximately RON 14 billion (EUR 2.8 billion) in losses in recent years,” Bolojan said, as quoted by News.ro.
The government is expected to approve strategic directions through a memorandum as early as next week, while additional analyses covering the remaining SOEs are to be completed within 30 days.
A first group of companies identified for rapid and potentially irreversible decisions by end-2026 includes flag carrier Tarom, cargo railway company CFR Marfă, aircraft services supplier Romaero, and aircraft constructor Avioane Craiova.
Tarom’s restructuring plan, already approved by the European Commission, is behind schedule. Authorities are exploring contingency scenarios in case an extension is not granted, with officials acknowledging that the airline’s current business model is not sustainable.
In the rail sector, CFR Marfă is expected to enter bankruptcy by May 31, with operations already being transferred to the newly established Carpatica Feroviar. The government is also preparing legislative changes to remove legal obstacles related to insolvency procedures for state entities.
Alongside restructuring, the government is working on a pipeline of companies that could be partially listed on the stock exchange. CEC Bank is seen as the most advanced candidate for an IPO, besides companies such as Hidroelectrica, Romgaz, and Transgaz.
“The state will remain the majority shareholder, and control over strategic decisions will be fully maintained,” Bolojan emphasized.
Other companies under consideration include the Constanța Maritime Ports Administration (20% stake), Bucharest Airports Company (20%), Salrom (up to 49%), the Romanian Lottery, the National Printing House, and the Romanian Post.
According to Gheorghiu, the list of candidates is still under analysis and will be refined based on further technical evaluation, Hotnews.ro reported.
The government argues that partial listings would improve transparency, corporate governance, and performance in the state sector, while also supporting the development of Romania’s capital market.
iulian@romania-insider.com
(Photo source: Gov.ro)
Leave a Reply