The Romanian government approved a draft law on December 18, creating the legal framework for the repayment of a $6.8-million debt to the United States executive. The sum will cover a loan contracted in 1992 for 30 years for the import of cotton for the textile industry.
The imports were carried out through operators designated by the Romanian state at that time. Over time, however, some of these companies went bankrupt or were dissolved, and the debts could no longer be recovered. These companies include SC Textilcotton SA, SC Impex Overseas Corp SRL, and SC Tuvic Impex SRL, which fell behind on payments and no longer exist legally.
Under these circumstances, the Romanian state assumes full responsibility for settling the debt to fulfill its international obligations to avoid the accumulation of additional penalties.
According to official data, as of June 30, Romania owed nearly $6.8 million. Of this amount, approximately $4.9 million represents unpaid principal installments, $821,000 represents outstanding interest, and over $1.08 million represents penalties accumulated for late payment.
The draft law provides that the payment will be made through the Ministry of Economy’s budget, in a distinct budgetary item. Authorities say this approach allows for direct and transparent management of the funds and definitively clarifies the situation of a debt over three decades old.
By paying this debt, Romania maintains its eligibility for the “Dependable Undertaking” status, which facilitates participation in international procurement programs and strengthens the country’s credibility in commercial and diplomatic relations with external partners, especially the United States.
“In the early 1990s, the Romanian Government contracted a cotton loan from the United States of America, amounting to $10 million, to support certain selected Romanian companies with raw material. The cotton was delivered, the companies closed, and the debt was not repaid. Romania remained with the unpaid obligation,” economy minister Radu Miruta said.
The repayment “may seem like a technical action. In reality, it is about respect, fairness, and common sense,” he added. (Romania-Insider)