Romanian Posta Romana To Get EUR50M Loan From EBRD Until End-Oct '09

Romania's state-owned postal company Posta Romana will get a EUR50 million loan from the European Bank for Reconstruction and Development (EBRD), until the end of October 2009, for investments in mail sorting centers in Bucharest and Cluj-Napoca, communications minister Gabriel Sandu said Sunday.

Sandu added the supplier of all necessary equipment for the two mail sorting centers in capital city Bucharest and northwestern city of Cluj-Napoca would also be selected until the end of October 2009.

"At the end of May, a delegation of the European Bank for Reconstruction and Development (EBRD) will come to Romania and we shall present the effects of the postal company's restructuring plan on its solvency and creditworthiness indicators, by cutting expenses and extending services. The EUR50 million worth loan contract will be signed until the end of October," Sandu said.

In March this year, the company's general manager, Marius Vatavu, said the EBRD officials expressed concern with respect to the postal company's capacity to get an EBRD loan and urged the company to cut expenses.

In June 2007, Posta Romana signed a loan agreement worth EUR50 million with EBRD in view of setting up a mail sorting center in Bucharest and equipping the Cluj-Napoca-based center. The total value of the project was estimated at EUR60 million, of which, the postal company was to cover EUR10 million from its ow funds.

Thus, Vatavu said the company will try to negotiate the clauses of certain contracts closed back in 2008, worth a total EUR35 million.

Mediafax