Government Promises To Hike Train Ticket Prices By More Than Inflation

05.15.2011 By Bostan Radu

Romania's Government has promised the International Monetary Fund that, by the end of August, it will amend legislation to allow state-owned transport companies CFR Calatori and Metrorex to increase their fees by more than the rate of inflation.

The purpose of this operation will be to enable the railway passenger carrier and the Bucharest subway company to cover their current expenses from their revenue.

The guarantee is included in the letter of intent to a EUR3.6 billion loan agreement with the IMF.

An emergency ordinance already drafted by the Ministry of Transports says train and subway ticket prices will be changed through an order of the minister of Transport, not according to inflation, to improve these companies' liquidity.

The ordinance says CFR Calatori's budget for 2011 was based on a 10% hike in ticket prices, starting with February. As regards Metrorex, the document mentions that the price of a subway trip is about 30% of the minimum price of such a trip in other European states.