The Romanian state will fail to complete the sale of companies to be privatized this year, because of the local and parliamentary elections. The process will be postponed most likely until 2009. This is the opinion expressed yesterday by Ioana Filipescu, a general manager of Raiffeisen Investment. She argued as follows in yesterday's press conference: "It is very well known that privatization makes no progress in electoral years. So the privatization of the Oltchim and of other companies the state wants to sell may be postponed for 2009." Privatization was slow in 2007 too, when it reached just 3% of the total number of fusions and acquisitions in Romania, estimated to 120 transactions by the Raiffeisen Investment representatives. Privatization reached about $ 200 million in 2007, in a total of $ 8,4 billion. The Authority for State Assets Recovery included in the privatization plan for 2008 60 companies having the state of Romania as main shareholder. Here are some of them: Oltchim, IAR Brasov, Antibiotice Iasi, Petromin Constanta and the power plant in Craiova. EIU: Romania is vulnerable According to the Economist Intelligence Unit, Romania is still vulnerable to the financial conditions on foreign markets, given the large need of foreign financing. In the most recent edition of the global prognosis by the EIU, states like Romnia and Bulgaria continue to be rated as vulnerable to the change of the investors' feelings. According to EIU analysts, Romania is one of those states most vulnerable to the international financial turbulences. The EIU estimates the financing of the current account deficit, so far coming from direct foreign investments, will grow more and more difficult as privitization is achieved.

Gabi MOROIANU