EU to investigate Romania's debt write-off for petrochemical firm Oltchim

09-Apr-16

European Union regulators will investigate whether Romania's decision to write off state-controlled petrochemical company Oltchim's debts breach the bloc's state aid rules, as per Reuters. Insolvent since early 2013, the indebted company is now being restructured ahead of its privatisation as part of an International Monetary Fund-led aid deal. The European Commission said it would examine the debts owed to the Romanian Authority on managing state assets (AAAS), debt cancelled by AAAS and other state-owned firms as well as the continuing provision of electricity, steam and saline solutions to Oltchim. "Our aim is to facilitate a sustainable future for the economic activities of the company without the need for further government support," European Competition Commissioner Margrethe Vestager said in a statement.