It's official: Romania will cash in only half of Rompetrol's debt

An official European Commission document published on May 5 reads that the Romanian state is expecting to get only half of the money on Rompetrol bonds in 2010. This is said to be one of the main causes to trigger the increase of the budget deficit. Rompetrol Group, controlled by Kazakhstan KazMunaiGaz, needs to pay 2.4 billion lei or 571 million euros to the Romanian state, which is nearly 0.5% of the GDP. The money represents Petromidia refinery historical events. This sum was feature in the state budget under incomes in 2010.

Only several days ago, Rompetrol Group financial manager Dimitri Grigoriev declared that he was negotiated with the Government to restructure de debt over 3-4 years.

„We are negotiating with the Government; we understand that it is important for them to receive the money. We will not be able to pay up the entire debt without foreign aid, which could take the shape of an inter-governmental loan. One of the possibilities is to restructure the debt for three-four years”, Dimitri Grigoriev declared several days ago, quoted by Romanian news agency Medifax.

The Rompetrol debt was put down as a source of income for Romania’s 2010 state budget: 571 million euros or 2.4 billion lei. The European Commission’s spring predictions reads that Romania’s getting only half of it is a main cause for the increase of the budget deficit.

The issue of this debt has been discussed by Romanian President Traian Basescu and the Group’s officials in March. According to a Presidential Administration communiqué, „President Traian Basescu met the Romanian and Kazak companies representatives who activate in the energy sector, reaffirming the interest of the Romanian state in stimulating a most favourable business environment to develop the bi-lateral cooperation. Romania’s President restated the necessity to respect the engagements and obligations taken by the companies that activate in Romania”.