Romanian Econ Min, AVAS To Aid Struggling State-Owned Cos

Romanian privatization authority AVAS and the Ministry of Economy will be able to financially support the struggling companies in the state's portfolio through loans, subsidy and working capital infusions, as well as the increase of capital with the value of debts.

The measures will amend an emergency ordinance on state aid, a draft found under Parliament debate, AVAS president Mircea Ursache told MEDIAFAX.
 
"Due to requests coming from companies in the AVAS portfolio, AVAS promoted a draft normative act supporting struggling economic agents, a project materialized in the publishing of Government Emergency Ordinance no. 206 in the Official Journal 831/10.12.2008," reads the explanatory note on the law approving Government Emergency Ordinance 206/2008, document supplied by AVAS for MEDIAFAX.
 
The law states that "the financial support granted to economic operators can come in the form of state aid for restructuring in the form of loans with an interest rate at least compatible with those granted for loans issued to healthy companies and especially with the reference rate adopted by the European Commission, subsidies, working capital infusions or share capital infusions, participations in share capital increases through the transformation of debts into shares."

Mediafax