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Romania was able to pass the financial crisis withoutIMF help

Published in Dosare on 16 April 2010, 20:42

The solutions of economical rebound, for which Boc Government is still groping, are successfullyapplied by Poland and were implemented also in interwar capitalist Romania.

SFin has identified even since January 2009 the ways to follow in order not to solicit an active financial agreement with IMF. Among the variants presented then were the restructuring of State-owned companies from certain fields, such as energetic and selling share of stock for private domain.Unfortunately, Romanian rulers, instead to present a new offer of investment to the foreign investors,

preferred to get a loan from international financial institutions

SFin has identified even since January 2009 the ways to follow in order not to solicit an active financialagreement with IMF. Among the variants presented then were the restructuring of State-ownedcompanies from certain fields, such as energetic and selling share of stocks to the private domain.Unfortunately, Romanian rulers, instead to present a new offer of investment to the foreign investors,preferred to get a loan from international financial institutions. Yet, this didnt mean the ideas exemplified

by SFin were not viable, because, although our rulers didnt take notice on them, these ideas were put inpractice in nowadays Poland and also in capitalist Romania before 1945. Only much later on, moreprecisely last week, maybe when they noticed the Polish success, the Ministry of Economy has come witha plan of selling State shareholdings from OMV Petrom, Transgaz, Transelectrica or Romgaz as a valueof one milliard of euro. But what a pity that weather they will ever move over from intention to a real sale,the moment when that sums will come it will be when the Polish would already have got ten times moremoney than us

Polish Government led by Donald Tusk chose to finance their budget deficit not by loans frominternational financial organism, as Romania did, but on the basis of privatisation. Thus, Warsawauthorities elaborated last year, a plan of selling the State shareholdings from few of the most importantcompanies, such as energetic groups Polska Grupa Energetyczna (PGE), Enea, Tauron and Pak, oilrefinery Grupa Lotos, mining company Lubelski Wegiel Bogdanska, metallurgic producer KGHM PolskaMiedz, bank PKO Polski and few other chemical operations.

It is important to mention that the way of privatisation that Polish opted for was listing of state activeassets on open stock exchange, such as not only the budget or private companies would earn, but alsothe local investors, such as private pensions capital, which manages active assets of over 40 milliards of euro.

Polish model

Polish plan began to show results even from the last months of year 2009. PGE, the most importantenergetic company, succeeded to gain 1,5 milliards of euro by selling on capital market 15% of the State-owned shares, the offer being oversubscribed by 7,5 times. In the same time the shares selling of themost important bank, PKO Bank Polki, where the Govern is the major shareholder, allowed to the PolishState to get 1,2 milliards of euro on stock exchange. In adding, in January 2010, Poland has sold a 10%shareholding to KGHM, the second biggest copper producer from Europe, for approximately 720 millionsof dollars.It can be seen that in contrast to Emil Boc, who always watched that the Politic to rule the Economic, thesame as in communism, Donald Tusk put his trust in market driven-economy. He explained that theprivatisation is important not only because will bring income of 6-7 milliads of euro in 2010, but alsobecause the State should have a very low profile in the economy. () A bigger competitiveness and anincreasing of savings are possible in an economy ruled as less as possible, and where liberty,competition and private property are key-values.

... resembles with the Romanian interwar model

We have come to a point where we can see that the Polish model is the very image of Romanianinterwar model. If the State keeps on deliberately maintaining the control over few key-companies, it

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doesnt mean to hold on their development. Lets look over few examples from that time. SocietateaNaional de Gaz Metan, which included also the producer (Romgaz), the shipper (Transgaz) and alsothe methane gas distributors started as a state-owned company, but in 40s the State was still holdingonly 58,6% from shares, the rest was in possession of private capital, thus procuring the necessaryinvestments for an optimal capacity of production and shipping. The same situation was at Societateade Difuziune Radio-Telefonic din Romnia, where the State held 60% of the share stock and theprivates 40%. In fact, most of the national society interwar was listed on stock exchange and had private

shareholders, even they were in minority.