Good corporate governance of state-owned enterprises was the focus of a two-day workshop jointly organised by the European Bank for Reconstruction and Development (EBRD) and the Romanian Ministry of Economy.

The event was led by the Dutch corporate governance scholar and practitioner Michiel Boersma and brought together 30 officials from the Romanian Ministry of Economy and other government departments. Participants discussed how the state, as a company owner, should manage its responsibilities more effectively and make its enterprises more competitive, efficient and transparent.

“Corporate governance is the pre-requisite for value creation in any company and is critical for the long-term sustainable development of state-owned companies. The government of Romania has made significant efforts in the last six months to improve corporate governance and strengthen the regulatory framework,” said Sorana Baciu, State Secretary at the Ministry of Economy, Commerce and Relations with the Business Environment.

“Improved efficiency and better transparency in the state sector leads to economic gains and helps create a level playing field for private and public enterprises. This in turn encourages a sound and competitive business sector. The EBRD can share valuable lessons from its investments in Romania and elsewhere. The current review of the relevant Romanian legislation provides us with an opportunity to support the government in adopting best international practices.”said Mihnea Crăciun, EBRD Deputy Director for Romania,

As a shareholder in Romania’s major electricity distribution company S.C. Electrica and in its largest natural gas producer Romgaz, the EBRD helped these two companies draw up corporate governance action plans ahead of their respective initial public offerings in 2014.

The EBRD is a leading institutional investor in Romania. It has invested over euro 7 billion in the country to date and has also mobilised more than euro 14 billion from other sources of financing.