The Authority for State Assets Management (AAAS) has been handling Romania’s privatisation process for the past two decades, overseeing privatised companies and working to recover non-performing assets for the state. Under the supervision of Romania’s Ministry of the Economy, AAAS is the successor to the State Property Fund, which managed Romania’s initial privatisation projects, and the Authority for Banking Assets. In February this year, AAAS announced that it plans to privatise 35 companies in 2015. Last year, AAAS concluded nine stock sales. Nicolae Minea, President, discusses AAAS’s main projects and goals.
European Times: Can you describe AAAS’s current portfolio?
Nicolae Minea: Through its role as the authority responsible for privatising state-owned assets and managing them during the privatisation process, AAAS is currently a shareholder in 595 commercial companies, of which 284 are in insolvency, dissolution or other stages of liquidation. The other 311 commercial companies are suitable for privatisation. AAAS is a major shareholder in nine commercial companies and holds over 33% of the social capital in another 15 commercial companies.
European Times: What are some of your future projects?
Nicolae Minea: AAAS aims to become a commercial player rather than a passive manager, in order to save the state assets that have a real chance of viability. This will include liquidating some companies in our portfolio for which recovery solutions cannot be found. The general strategy of AAAS is to attract new equity and non-performing state receivables into our portfolio, in order to optimise them and maximise state revenues. AAAS aims to simplify the legal aspects of the privatisation of minor stock packages, and will modify the legal base for the privatisation of companies involved in research and development. AAAS will continue to be involved in post-privatisation monitoring.
European Times: How is AAAS bringing failing companies back into the economy?
Nicolae Minea: AAAS performs detailed analyses of all the companies in its portfolio and can provide information about these companies to potential investors. Our analyses show that many insolvent companies in our portfolio could be restructured and reintroduced into the economy. The goal of AAAS is to save all viable modules from insolvent companies, in order to preserve jobs and to create new ones. AAAS will devise reorganisation and restructuring plans adapted to each company’s special needs. Romania’s privatisation process continues to be a desirable opportunity for investors and for the national economy.
