The Romanian government plans to aid the funding of Oltchim’s acquisition of Petrom's petrochemicals plant by next month. Oltchim was in talks with several banks for a €70 million (US$100 mln) loan to fund the acquisition, which it was finding difficult to get as the company is debt-laden at the time of a global cash squeeze that has also affected demand. However, Romanian Prime Minister has assured that the government will lend a hand to the ailing company and give state guarantees for €50 mln. With this, the acquisition is estimated to be completed by the beginning of August. The government plans to guarantee 80% of Oltchim's long-term investment plans of €400 mln and may also consider transferring its debt into the portfolio of the state's privatisation agency AVAS.
13-Jul-09 
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