Romanian Rail Freight Company CFR Marfa Faces Insolvency

Romanian rail freight company CFR Marfa is not able to pay the wages of its 7,500 employees before the Easter holiday after the railway infrastructure operator CFR blocked its accounts over unpaid debts worth RON836mn (€180mn), Ziarul Financiar daily reported on March 29. Trade unions representing CFR Marfa workers have appealed to President Klaus Iohannis to help the company, bne IntelliNews reported. A publicly funded bailout for the company would be problematic. Last December, the European Commission said it had already opened an in-depth investigation to assess whether debt write-offs by the Romanian state in favour of CFR Marfa and the failure to collect debts from the company have given the company an unfair advantage in breach of EU state aid rules. State-owned CFR Marfa has to pay a series of bills — including its employees’ salaries — but is unable to do so because its accounts are blocked. Read more.