Update: Ministry of Energy announces it has signed with the Ministry of Finance and Hunedoara Energy Complex an agreement on granting to the complex the first installment of individual rescue aid. The money must be used for current expenses and to purchase the remainder of greenhouse gas emissions rights.
The General Manager of Hunedoara Energy Complex (CEH), Constantin Jujan, has resigned after just five months after his appointment, because the state aid for CEH continues to be delayed, and the timetable agreed with the IMF and the EU cannot be applied, writes Mediafax.
The purchase of pollution rights and the restructuring program are impossible to follow, explains the former manager.
“I resigned because of the delay of granting the loan, in the form of an aid from the Ministry of Finance, the 98 million lei approved by the Emergency Ordinance no. 22/2015. It has been too long delayed because of bureaucracy. There is also a schedule agreed with the International Monetary Fund (IMF), the European Commission (EC) regarding the company activities. We were going to purchase certificates, money was needed also for the restructuring schedule. But these terms were not met”, declared for Mediafax, Constantin Jujan.
The government approved last month a loan of 167 million lei for CEH, as an individual state aid for rescue, conditioned by warranties and by the management’s obligation to draw up a voluntary liquidation plan if the loan is not returned, or the unit does not present a restructuring program.
How does the loan approved by the Government work
The loan was to be paid in two installments over a period of six months and the value of the warranties must cover at least 120% of the loan, with ANAF establishing in this respect the seizure insurer over some real estate. The first installment of the loan was to be 98.4 million lei, and the second installement of 68.5 million lei, subject to repayment of a loan granted by the Government to CEH in May, for a period of three months, worth 40 million lei.
CEH would repay the loan from its own resources, but will benefit from an extension of its granting, if it presents a restructuring program and endorsed by the European Commission.
If within six months a restructuring plan is not submitted or the proof of repayment is not indicated, the company will be required to submit a voluntary liquidation plan. Another condition for the loan is that money will not be assigned for the coal sector, the mining activity of the company will be legally separated from the other activities.