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Romanian minister Boagiu: Risk that railway companies go bankrupt is high

de V.O.
Miercuri, 29 septembrie 2010, 16:19 English | Business

The continuation of a restructuring program is the only chance to save companies in the Romanian railway sector, Transport minister Anca Boagiu has said. She said following a meeting with railway trade union leaders that 2000 was the last year when these companies operated without loss.

However painful layoffs are, the risk that these companies go bankrupt is very high, considering the current situation of financial collapse in the railway sector, she said. Boagiu warned that should these companies go bankrupt, all railway personnel would face layoffs, not only several thousands of employees.

The restructuring of these companies would be applied in line with the targets set in a deal signed by the Romanian Government with the IMF and the European Commission.

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