Posta Romana recorded losses of EUR 7.4 mln in 2015 Posta Romana recorded losses of EUR 7.4 mln in 2015

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The state-owned Posta Romana is back in the red, after it recorded losses of EUR 7.4 million in 2015. The company reported a turnover of RON 1.07 billion, down by 4.1 percent year-on-year. In 2014 the operator had enjoyed a brief reversal of fortune after it recorded a profit of over EUR 5 million, for the first time in six years.

Compared to 2014, Posta Romana employed 426 less staff.

In March the operator reported it had earned a gross profit of EUR 4.3 million in 2015. However, one month later Posta Romana was fined EUR 7.4 million for failing to meet competition obligations.

According to Minister of Communications and for Information Society Marius Bostan, Posta Romana, which incurred debts of over EUR 500 million, has a difficulty in attracting financing and investments. The official estimates that the operator needs over EUR 100 million in investments in the next couple of years to reach standards similar to those offered by foreign postal services. According to Bostan, in the first stage, the Romanian post services will lend EUR 47 million from the European Bank for Reconstruction and Development (EBRD) in order to finance investment in the IT system and the infrastructure. In the second stage of the modernization process the operator will streamline the distribution process and expand its car fleet, the minister added.

The Romanian state owns a 75 percent package in the Posta Romana through the Ministry for Information Society while Fondul Proprietatea, a joint-stock company set up by the Romanian state, owns the remaining 25 percent of the company shares. Posta Romana owns over 80 percent of postal sub-units currently operating in Romania and serves over 7.5 million addresses.