Over 1,750 privatization contracts were disbanded by the state in the last 24 years for buyers’ failing to fulfill contractual obligations. At this time, 9 other contracts denounced by authorities for the same reason, are before the courts, a government document reveals, according to profit.ro. More precisely, 1,753 privatization contracts were closed down by the Government during 1992-2016. In the 1992-2013 period, 11,184 contracts of sale-purchase of shares, entered the post-privatization monitoring.
The privatization contracts of Avicola Botosani (purchased Rompac International Bucuresti), Intertrans III Sebes (acquired by TMP Comp Sebes) Agromec Vameş Galati (bought by Ion-Cozma Dori), ‘Tehnica de Calcul București’ Institute (purchased by Transbordare Vagoane Marfă) Agromec Cobadin Constanta (purchased by company’s employees association) are reviewed by the law courts.
Last year, a National Association of Entrepreneurs study shows that 7,700 state-companies were privatized, but only a quarter of them are still operational. 75 percent went bankrupt due to various reasons.
In some cases, state-companies had little chance of surviving. They were technologically outdated and had no customers. They produced on stock to artificially keep jobs.
A special case is Ford’s car plant in Craiova. US carmaker did not comply with the initial agreement. The factory should reach a production rate of 250,000 cars annually. But there was never any problem of canceling the privatization contract.
Ford has not sent factory’s machines for scrap, but has invested EUR 1 billion in the equipment there. Also, the production of a new car model will begin soon that could compensate the lack of popularity of the B-Max.