EU regulators cleared 37.7 million euros ($40.3 million) of state funds for Romanian state-owned power producer Complexul Energetic Hunedoara (CE Hunedoara) on condition either that the company repays the money after six months or that Romania presents a revamp plan.
Romania granted the aid, which consisted of short-term loans, to help CE Hunedoara pay its creditors and continue its operation following losses in the last two years. The company has a 5 percent share of the Romanian electricity market.
The European Commission said the financial support was in line with EU rules.
"Romania has committed to submit a restructuring plan aimed at ensuring the future viability of CE Hunedoara if the company is unable to pay back the rescue aid in six months' time," the EU executive said in a statement.
($1 = 0.9364 euros)
(Reuters)
