Prime Minister Ilie Bolojan said on Friday that, in his view, stock market listings are one of the ways to improve the efficiency and performance of state-owned companies, stressing, however, that this is not a decision of the current government nor 'a last-minute windfall'.

Speaking to the radio broadcaster Europa FM, he said that a government meeting had been presented with a briefing on the situation of state-owned companies that have accumulated debts and risk bankruptcy, as well as possible ways to improve the performance of others, including by selling minority stakes while the state retains control.

'This does not mean selling a company overnight - I stress, this is an information note and possible working options. If any government decides to sell a stake in a state-owned company, there is a procedure that takes about a year, at least a year and a half, because the company must be evaluated, the shares must be assessed and approvals must be obtained from various bodies. A range of decisions must be taken, especially if the company is not already listed,' Bolojan said.

He reiterated that stock market listings can bring greater transparency and more effective management.

'I personally believe that one of the ways to improve the efficiency and performance of state-owned companies is through stock market listing, because this means transparency and management methods that are internationally recognised. If minority stakes are sold, a private shareholder enters the management structure and will ensure that funds are not misused. In this way, overall company performance can improve. But this is not a decision of the current government, nor is it a last-minute windfall, because even if such a decision were taken tomorrow - which it has not been - results would only be visible in about a year,' the prime minister said.

Asked about Hidroelectrica, Bolojan said he does not recall all the companies cited as examples for potential listing.

'When you sell shares, you raise capital that can be invested. You asked about Hidroelectrica. One of the issues, for example, is that for dams located on rivers in lowland areas, where production is continuous - such as Iron Gates - unlike mountain dams where water is stored, almost all the energy produced between 12:00 and 17:00 is effectively lost, because electricity prices during those hours fall gradually to around 10, 20, 30 or 40 lei, while in the evening prices can reach 600, 700 or even 800 lei. If battery storage systems were installed at each dam to store the energy produced during those hours, it could be sold in the evening at much higher prices, which would mean higher overall profits for the company and, at the same time, lower electricity prices in Romania,' Bolojan explained.

He added that selling shares does not mean 'throwing money away', but would enable necessary investments.

'Hidroelectrica, for example, likely needs more than 1,000 megawatts of storage capacity to balance production, and this alone could reduce electricity prices in Romania by a few percentage points, given that the company holds more than 25% of the market,' Bolojan added. AGERPRES (RO - writing by: Alina Novaceanu; EN - writing by: Simona Iacob)