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Romanian Railway Cos Risk Foreclosure For Pwr Debts – Transport Min

The Romanian railway companies risk being foreclosed by power suppliers, who want to recover their debts totaling 1.2 billion lei (EUR1=RON4.1835), and are thus being endangered of losing railway stations or trains, Transport Minister Radu Berceanu said Thursday in a press conference.
Romanian Railway Cos Risk Foreclosure For Pwr Debts - Transport Min
30 apr. 2009, 16:25, English

The agreement sealed last year with the power suppliers for a rescheduling of debt payments has been annulled because railway companies paid a single installment so far, he added.

"The latest agreement, sealed in the fall of 2008, was annulled by the power suppliers, over failure to observe contract terms,” Berceanu said. The railway companies paid only once a small amount of money and decided to pay the rest of the debts through compensation, by allowing the power suppliers to transport coal on the railway, he added.

According to the minister, the national railway system is in "an extremely difficult situation” and unless authorities take urgent measures, part of the companies owned by the three large railway company divisions in Romania, respectively CFR SA, CFR Calatori and CFR Marfa, may disappear in maximum two months.