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In January 2010, transport minister Radu Berceanu said that his government would make a new attempt to privatise CFR Marfa, the freight rail company, following a failed divestment in 2007.
In January 2010, transport minister Radu Berceanu said that his government would make a new attempt to privatise CFR Marfa, the freight rail company, following a failed divestment in 2007. As part of the process of preparing for privatisation, the company would cut costs by an estimated RON217mn (US$77mn) in 2010, to be achieved through a combination of measures including lay-offs, a wage and bonus freeze, and a decision not to outsource its railway repair works. Earlier, the rail company's general manager, Mihai Frasinoi, told the press that he was looking to lay off as many as 6,380 employees beginning from March 2010. I would like to complete the privatisation this year,' the minister said, adding that he believed that OEBB of Austria and Deutsche Bahn of Germany were potentially interested in acquiring CFR Marfa. Shortly after the minister's comments, however, OEBB issued a statement saying it was not interested in taking over CFR Marfa or in entering the Romanian passenger rail market. We now estimate Romania's 2009 recession was worse than we originally thought, with GDP dropping by 7.0% (vs. A fall of 5.7%).
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