Romania Holds On To Majority Stake In Electrica - Sources

11.03.2011 By Florentina Dragu

Romanian government doesn’t agree with the International Monetary Fund’s proposal to privatize the state-run energy company Electrica, but will sell minority stakes in the company’s three distribution units, government sources said Thursday.

"Privatizing or selling the majority stake in Electrica is out of the question. However, stakes of 10% to 15% in the three distribution divisions will be sold," the sources told Mediafax.

Electrica runs six power supply and distributions units in Romania and has its shares in the hands of the Economy Ministry.

Under a EUR3.5 billion loan agreement with the IMF, the Romanian authorities pledged to sell minority stakes in several key energy and oil companies and to reorganize large state enterprises, including by appointing private managers to try and turn the companies profitable.

Alexandru Sandulescu, director with the Economy Ministry, said earlier this week that the IMF is putting "certain pressure" on the government to sell its majority stake in Electrica.