CFR Marfa risks bankruptcy, Chiritoiu says

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CFR Marfa (Freight) has not recorded any improvement of its financial situation and risks bankruptcy, Competition Council President Bogdan Chiritoiu said.

He warned that the European Commission (EC) could impose drastic sanctions considering that the company does not have the debts, recorded several years ago, erased. Moreover, the state promise to privatize the company in 2013 failed to materialize.

“CFR has the sword of Damocles over its head,” Chiritoiu pointed out.

May last year, Transport Minister at the time, Dan Costescu, said the government wants to avoid company’s closure and liquidation.

The first attempt to sell the company was in 2005, when CFR Marfa was valued at EUR 1 billion, while the last attempt in 2013, the Romanian authorities required only EUR180 million.

Since 2008 to date, CFR Marfa had losses in each year, the worst result was recorded in 2009, with a loss of RON 535 million. In 2015 the company’s turnover fell by 13 percent from RON 918.8 million in 2014 to RON 800 million.

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