The payment of a historical debt to the US for fibre cotton imported in the 1990s was regulated in this week's Government meeting, an old debt that can now be settled correctly, transparently and with dignity, Minister of Economy, Digitalisation, Entrepreneurship and Tourism Radu Miruta said on Friday on his Facebook page.
"In 1992, a major scam took place in Romania: the so-called Cotton Affair. Some people pulled scams and got rich, while the Romanian state was left both liable for payment and with a long-term diplomatic embarrassment. For 33 years, decision-makers pushed this mess under the carpet. Today, we have brought it to light," the minister wrote.
According to him, at the beginning of the 1990s, the Romanian Government contracted a cotton loan from the US worth 10 million dollars, in order to support with raw materials several Romanian companies "hand-picked." The cotton was delivered, the companies shut down, the debt was not repaid and Romania remained with the unpaid obligation.
"Beyond history and those responsible, Romania is the same country, with the same tricolour and with millions of honest people. And our external image is not a detail: it is something that must be defended. As Minister of Economy, in this week's Government meeting, I made a natural gesture for a Romania that wants to be respected: I brought an important piece of legislation up to the level of 2025 and took a historical debt out from under the carpet. It may seem like a technical demarche. In reality, it is about respect, fairness and common sense. First of all, we regulated the payment of a historical debt to the United States of America, for fibre cotton imported in the 1990s. A debt more than 30 years old, assumed by the Romanian state in 1992, which today we can settle correctly, transparently and with dignity. It is a necessary step for Romania's credibility as an international economic partner," Miruta underscored.
At the same time, the Minister of Economy says a clear definition of optical fibre has been introduced into legislation.
In his view, the two measures are clearly connected, namely correcting old legislative oversights that "allowed abuses, losses and a lack of responsibility towards the state."
On Thursday, the Government approved a draft to settle the historical debt arising from the loan granted by the US Government, through the Department of Agriculture (USDA) and the Commodity Credit Corporation (CCC), for the import of fibre cotton, the Ministry of Economy, Digitalisation, Entrepreneurship and Tourism (MEDAT) announced.
The loan, contracted in 1992 for a term of 30 years, was used to purchase raw materials for the Romanian textile industry through designated economic operators. Because of the bankruptcy or dissolution of these operators, the debts could not be recovered. The three companies left with outstanding payments and that have been dissolved are SC Textilcotton SA, SC Impex Overseas Corp SRL and SC Tuvic Impex SRL.
The Romanian state assumes full responsibility for the payment of these debts, ensuring the observance of international obligations, avoiding additional penalties and maintaining commercial and diplomatic relations with the US partners.
The amount owed as of 30 June 2025 was 6.793 million US dollars, including unpaid principal instalments (4.890 million US dollars), unpaid initial interest (821,066 US dollars) and late payment penalties (1.081 million US dollars), to which any further penalties and transfer costs will be added until the payment is made.
As of 30 September 2025, the total payment amount, including penalties, according to the arrears declaration submitted by the USDA, was 6.83 million US dollars, an amount which is to be allocated in the MEDAT budget for 2026, to which any penalties accrued up to the date of payment, as well as bank transfer costs, will be added.
The Ministry of Economy coordinates the process, including submitting data to the US Department of Agriculture, managing the funds and enforcing the relevant legislation, thus completing a process that began in 1992 and continued through several memoranda and previously unfinished legislative drafts.
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