Listing 15 percent stake in state-owned hydro power plant Hidroelectrica will bring almost EUR 1 billion to Ministry of Finance treasury, an amount that will permit the government to fall in the budget deficit target of 3 percent assumed for 2017, said Remus Borza, former coordinator of Euro Insol, which managed Hidroelectrica insolvency.
He refers to the changing of the current methodology, according to which the listing money remain in company’s budget. If this methodology will be changed, the money will go to the state budget.
This comes after Bucharest Court of Appeal decided on March 30, the final closing of Hidroelectrica insolvency, after almost five years since the procedure opening.
“The disastrous situation of Hidroelectrica when applying the opening procedure, with cumulative losses of over EUR 170 million in the financial years 2011 – 2012, debts of EUR 1.1 billion and a negative net flows of RON 782 million, was due to a series of factors that were revealed by the judicial administrator in the report on the causes and circumstances of Hidroelectrica insolvency,” Euro Insol shows.
Another cause of insolvency were the contracts where Hidroelectrica was a party on buying energy from other producers, more expensive (Nuclearelectrica, Termoelectrica, Turceni Energy Complex, Rovinari Energy Complex, Electrocentrale Deva), called ‘smart guys’.