In the published version of this Decision, some information has been omitted, pursuant to articles 30 and 31 of Council Regulation (EU) 2015/1589 of 13 July 2015 laying down detailed rules for the application of Article 108 of the Treaty on the Functioning of the European Union, concerning non-disclosure of information covered by professional secrecy. The omissions are shown thus […] |
PUBLIC VERSION This document is made available for information purposes only. |
COMMISSION DECISION (EU) 2021/69
of 24 February 2020
on State aid SA.43549 (2017/C) (ex 2017/FC) (ex 2016/NN) (ex 2015/EO) implemented by Romania for CFR Marfă
(notified under document C(2020) 1115)
(Only the Romanian text is authentic)
(Text with EEA relevance)
1.
PROCEDURE
2.
DETAILED DESCRIPTION OF THE AID
2.1.
Beneficiary
Market share (%) |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 (*1) |
|||
by volume of goods carried |
CFR Marfă |
[70-80] |
[60-70] |
[50-60] |
[50-60] |
[60-70] |
[50-60] |
[50-60] |
[50-60] |
[50-60] |
[40-50] |
[40-50] |
[40-50] |
||
Other rail freight operators |
[20-30] |
[30-40] |
[40-50] |
[40-50] |
[30-40] |
[40-50] |
[40-50] |
[40-50] |
[50-60] |
[50-60] |
[50-60] |
[50-60] |
|||
by distance carried (tkm) |
CFR Marfă |
[60-70] |
[50-60] |
[40-50] |
[40-50] |
[40-50] |
[40-50] |
[40-50] |
[40-50] |
[40-50] |
[30-40] |
[30-40] |
[30-40] |
||
Other rail freight operators |
[30-40] |
[40-50] |
[50-60] |
[50-60] |
[50-60] |
[50-60] |
[50-60] |
[50-60] |
[60-70] |
[60-70] |
[60-70] |
[60-70] |
|||
|
2.2.
The financial difficulties of CFR Marfă before the failed privatisation in 2013
In thousand tonnes |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
||
Cargo volume transported |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
||
|
In FTE |
1999 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
||
Number of Employees |
29 289 |
15 992 |
10 813 |
8 257 |
9 053 |
8 767 |
6 508 |
6 454 |
6 155 |
5 995 |
5 717 |
||
|
In RON million |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
||
Total turnover |
1 097,30 |
1 056,10 |
1 150,00 |
1 020,60 |
961,50 |
954,90 |
775,94 |
673,61 |
||
EBITDA |
– 186,60 |
–97,10 |
25,10 |
–41,50 |
–89,70 |
17,70 |
27,56 |
–43,69 |
||
Interest expenses |
31,40 |
29,40 |
27,00 |
23,10 |
16,00 |
12,90 |
8,98 |
5,62 |
||
Total debt |
1 261,60 |
1 673,40 |
1 891,20 |
2 186,60 |
666,30 |
720,20 |
788,25 |
868,13 |
||
Shareholders’ equity |
93,60 |
– 343,50 |
– 471,90 |
– 904,60 |
566,20 |
540,50 |
405,21 |
302,00 |
||
Subscribed share capital |
247,33 |
248,15 |
251,60 |
263,96 |
1 987,54 |
1 988,35 |
2 012,12 |
2 012,12 |
||
Other equity |
– 153,69 |
– 591,62 |
– 723,50 |
–1 168,58 |
–1 420,20 |
–1 447,69 |
–1 606,91 |
–1 710,13 |
||
|
93,91 |
120,62 |
107,98 |
106,46 |
114,90 |
101,99 |
88,08 |
88,08 |
||
|
236,22 |
253,62 |
266,15 |
279,17 |
293,50 |
306,36 |
201,05 |
201,05 |
||
|
– 141,84 |
– 430,59 |
–1 004,18 |
–1 149,12 |
–1 565,68 |
–1 828,88 |
–1 736,85 |
–1 844,48 |
||
|
– 341,98 |
– 535,27 |
–93,45 |
– 405,09 |
– 262,92 |
–27,16 |
– 159,19 |
– 154,78 |
||
% of the share capital lost |
– 62 |
– 238 |
– 288 |
– 443 |
– 71 |
– 73 |
– 20 |
– 15 |
||
Debt/Equity ratio |
13,48 |
–4,87 |
–4,01 |
–2,42 |
1,18 |
1,33 |
1,94 |
2,87 |
||
EBITDA/Interest coverage ratio |
–5,94 |
–3,30 |
0,93 |
–1,80 |
–5,61 |
1,37 |
3,07 |
–7,77 |
||
|
In RON million |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
||
Provisions |
215,72 |
96,92 |
61,1 |
31,69 |
1,97 |
2,68 |
1,55 |
||
Long-term borrowings |
324,74 |
272,82 |
223,77 |
169,95 |
113,23 |
57,15 |
— |
||
Deferred revenue |
2,24 |
2,49 |
2,23 |
2,49 |
1,61 |
1,73 |
1,4 |
||
Non-current liabilities |
542,7 |
372,23 |
287,1 |
204,13 |
116,81 |
61,56 |
2,95 |
||
Trade payables* |
556,36 |
709,55 |
841,85 |
301,12 |
448,10 |
604,60 |
731,54 |
||
Short-term borrowings |
97,38 |
89,06 |
83,02 |
67,23 |
77,55 |
83,50 |
81,46 |
||
Taxes |
310,86 |
487,48 |
631,57 |
52,15 |
69,00 |
14,07 |
30,79 |
||
Other liabilities |
166,13 |
232,86 |
343,02 |
36,30 |
8,25 |
24,52 |
21,39 |
||
Current liabilities |
1 130,73 |
1 518,95 |
1 899,46 |
456,80 |
602,90 |
726,69 |
865,18 |
||
Total debts |
1 673,43 |
1 891,18 |
2 186,56 |
660,93 |
719,71 |
788,25 |
868,13 |
||
Total assets (= equity + debts) |
1 329,96 |
1 419,28 |
1 281,94 |
1 227,16 |
1 260,21 |
1 193,47 |
1 170,12 |
||
|
In RON million |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
||
Total trade payables |
562,61 |
726,74 |
862,43 |
318,72 |
465,70 |
607,68 |
724,17 |
934,66 |
991,88 |
||
|
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
||
|
412,68 |
582,77 |
716,30 |
213,47 |
348,65 |
505,26 |
623,54 |
826,09 |
860,93 |
||
% CFR Infrastructură out of total trade payables |
73,35 |
80,19 |
83,06 |
66,98 |
74,86 |
83,15 |
86,10 |
88,38 |
86,80 |
||
|
Million RON |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
||
Amount overdue, out of which |
347 |
515,66 |
663,96 |
182,6 |
314,28 |
460,57 |
557,57 |
777,33 |
950,08 |
||
Interest rate and penalties (daily) for late payment % |
0,05 |
0,05 |
0,05 |
0,05 |
0,06 |
0,05 |
0,05 |
0,03 |
0,03 |
||
Interest and penalties invoiced within the year |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
||
% of total debt represented by CFR Infrastructură |
30,57 |
28,08 |
34,44 |
34,15 |
27,65 |
62,24 |
61,78 |
76,57 |
73,23 |
||
|
In RON million |
2008 |
2009 |
2010 |
2011 |
2012 (*2) |
June 2013 (*3) |
After June 2013 |
2014 |
2015 |
2016 (*4) |
2017 (*5) |
2018 |
||
Principal amount |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
||
Interest for late payment |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
||
Penalties for late payment |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|||
TOTAL overdue debts towards the State budget |
130,2 |
309,41 |
376,21 |
627,4 |
838,47 |
1 001,2 |
0 |
0 |
0 |
0 |
0 |
19,9 |
||
|
2.3.
History of CFR Marfă’s failed privatisation attempts and the 2013 debt-to-equity swap
2.4.
CFR Marfă’s financial situation after the failed privatisation
2.5.
Scope of the formal investigation procedure
3.
COMMENTS ON THE OPENING DECISION
3.1.
Observations from interested parties
3.2.
Comments from Romania
3.2.1.
Romania’s comments concerning the strategic importance of CFR Marfă and the applicability of Article 107(1) TFEU
3.2.2.
Romania’s comments on the observations submitted by the complainant on the strategic importance of CFR Marfă
3.2.3.
Romania’s comments on Measures 1 and 4
In RON million |
2013 |
2014 |
2015 |
2016 |
2017 |
||
Fiscal obligations and other debt to the State budget |
[…] |
[…] |
[…] |
[…] |
[…] |
||
Sums to be refunded/returned by ANAF to CFR Marfă |
[…] |
[…] |
[…] |
[…] |
[…] |
||
Tax certificate no/date |
1042215/ 18.12.2013 |
1356231/ 5.12.2014 |
107680/ 16.12.2015 |
90817/ 12.1.2016 |
78183/ 14.12.2017 |
||
|
3.2.4.
Romania’s comments on Measures 2 and 5
3.2.5.
Romania’s comments on Measure 3
4.
ASSESSMENT OF THE AID
4.1.
Existence of Aid within the meaning of Article 107(1) of the Treaty
4.1.1.
Undertaking
4.1.2.
Economic activity
4.1.3.
State origin (resources and imputability to the State)
4.1.3.1.
Measures 1 and 4 – Non-enforcement of social security debts and outstanding taxes (i) since at least 2010 until the 2013 debt-to-equity swap and (ii) after the debt-to-equity swap
4.1.3.2.
Measures 2 and 5 – the non-enforcement of debts towards CFR Infrastructură and the increase of debts towards CFR Infrastructură as a result of the continued provision of services (i) since at least 2010 until the 2013 debt-to-equity swap and (ii) after the debt-to-equity swap
4.1.3.3.
Measure 3 – the debt-to-equity swap amounting to RON
1 669
million (ca. EUR 363 million)
4.1.4.
Selectivity of the measures granted
4.1.5.
Economic advantage of the measures granted
4.1.5.1.
Non-applicability of the market economy operator test in the case at hand
4.1.5.2.
Hypothetical application of the MEO Test in the case at hand
4.1.5.3.
(i) Measures 1 and 4 – The non-enforcement of social security debts and outstanding taxes before and after the 2013 debt-to-equity swap
In RON million |
31.12.2010 |
||
Book value of assets (A) |
[…] |
||
Liquidation value of assets(B) |
[…] |
||
|
[…] |
||
|
[…] |
||
|
[…] |
||
Sub-total |
[…] |
||
|
[…] |
||
|
[…] |
||
Sub-total |
[…] |
||
|
[…] |
||
|
[…] |
||
Total (difference between the liquidation value of assets and debts to various creditors in case of liquidation) (J) |
[…] |
||
|
4.1.5.4.
(ii) Measures 2 and 5 – The non-enforcement of debts towards CFR Infrastructură and the increase of debts towards CFR Infrastructură as a result of the continued provision of services (i) since at least 2010 and until the 2013 debt-to-equity swap and (ii) after the debt-to-equity swap
|
In 2010 (RON million) |
Fraction from total (%) |
Approximated recovery amounts for trade payables in 2010 (RON million) |
Fraction from total (%) |
||
Trade payables towards CFR Infrastructură |
412,68 |
73,35 |
183,19 |
44,4 |
||
Total trade payables |
562,6 |
100 |
249,75 (171) |
44,4 |
||
|
|
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
||
% of the rail freight traffic corresponding to CFR Marfa |
[50-60] |
[40-50] |
[40-50] |
[40-50] |
[40-50] |
[40-50] |
[30-40] |
[30-40] |
[30-40] |
[30-40] |
||
% of CFR Infrastructura’s revenues represented by CFR Marfa |
[10-20] |
[10-20] |
[20-30] |
[10-20] |
[10-20] |
[10-20] |
[10-20] |
[10-20] |
[10-20] |
[10-20] |
||
|
|
1 January 2014 (RON million) |
Fraction from total (%) |
Approximated recovery amounts for trade payables in 2014 (RON million) |
Fraction from total (%) |
||
Trade payables towards CFR Infrastructură |
213,47 |
67 |
213,47 |
100 |
||
Total trade payables |
318,72 |
100 |
318,72 (174) |
100 |
||
|
4.1.5.5.
(iii) Measure 3 – The debt-to-equity swap amounting to RON
1 669
million (ca. EUR 363 million)
Liabilities subject to the debt-to-equity swap |
Before June 2013 debt-to-equity swap |
June 2013 Debt-to-equity swap |
|||||
Amount of debt converted into equity |
Proportion of debt converted into equity (%) |
||||||
|
RON million |
EUR million |
RON million |
EUR million |
|
||
|
1 001,2 |
217,65 |
1 001,2 |
217,65 |
100 |
||
|
[…] |
[…] |
[…] |
[…] |
|
||
|
[…] |
[…] |
[…] |
[…] |
|
||
|
783,78 |
170,39 |
667,99 |
145,22 |
85 |
||
under OUG 32/2013 out of which: |
|
|
527,20 |
114,61 |
67 |
||
|
|
|
[…] |
[…] |
|
||
|
|
|
[…] |
[…] |
|
||
under OUG 61/2013 out of which: |
|
|
140,79 |
30,61 |
18 |
||
|
|
|
[…] |
[…] |
|
||
|
|
|
[…] |
[…] |
|
||
TOTAL |
1 784,98 |
388,04 |
1 669,19 |
362,87 |
94 |
||
|
In RON million |
31.12.2012 |
Approximated recovery amounts in 2012 |
Recovery % in 2012 |
||
Book value of assets |
[…] |
|
|
||
Liquidation value of assets (190) |
[…] |
|
|
||
|
[…] |
[…] |
100 |
||
|
[…] |
[…] |
100 |
||
|
[…] |
[…] |
100 |
||
Sub-total |
[…] |
[…] |
[…] |
||
|
[…] |
[…] |
[90-100] |
||
|
[…] |
[…] |
[90-100] |
||
Sub-total |
[…] |
[…] |
[…] |
||
|
[…] |
[…] |
[0-5] |
||
|
[…] |
[…] |
[0-5] |
||
Total of debt not covered by the liquidation value of assets |
[…] |
|
|
||
|