CFM receives emergency fuel to avoid bankruptcy
Moldova's state-owned railway company, Calea Ferată din Moldova (CFM), is set to receive 500 tons of diesel from state reserves to maintain operations.
The government approved this decision on Wednesday. This allocation of diesel will enable the company to continue its freight and passenger transport services.
The company faces a significant risk of bankruptcy due to its dire financial situation.
Therefore, to address pressing issues like the suspension of some domestic routes, deficiencies in train set repair and maintenance, and to prevent the systemic non-payment of employee salaries, 500 tons of diesel were authorized for release from state reserves.
Concurrently, over 12 million lei from the state budget will be allocated to the Material Reserves Agency to replenish the state's diesel reserves.
It is worth noting that earlier this month, the government approved providing CFM with two billion lei in support over a five-year period. This financial aid comes amidst CFM's inability to cover necessary expenses and a drastic reduction in both freight volume and passenger numbers. In return, the company also has several obligations to fulfill, with the primary task being the repair and rehabilitation of railway lines and infrastructure.
Translation by Iurie Tataru
