The government on Thursday approved a draft law to settle Romania's historical debt arising from a loan provided by the US Government, through the Department of Agriculture and the Commodity Credit Corporation (CCC), for the import of cotton fibre, the Ministry of Economy, Digitalisation, Entrepreneurship and Tourism (MEDAT) announced.
The credit, contracted in 1992 for a 30-year term, was used to purchase raw materials for the Romanian textile industry through designated economic operators. Due to the bankruptcy or deregistration of these operators, the debts could not be recovered. The three companies remaining liable and subsequently deregistered are SC Textilcotton SA, SC Impex Overseas Corp SRL and SC Tuvic Impex SRL.
The Romanian state will assume full responsibility for the repayment of these debts, ensuring compliance with international obligations, avoiding additional penalties, and maintaining commercial and diplomatic relations with US partners.
As of 30 June 2025, the amount owed stood at USD 6.793 million, including unpaid principal instalments (USD 4.890 million), unpaid initial interest (USD 821,066) and late-payment penalties (USD 1.081 million), with additional penalties and transfer costs potentially accruing until payment is completed.
By 30 September 2025, the total amount due, including penalties according to the arrears statement submitted by the USDA, was USD 6.830 million. This sum is set to be allocated in MEDAT's 2026 budget, with any further penalties accrued until the date of settlement, as well as bank transfer costs, to be added.
Payments will be made through the Ministry of Economy's budget under a separate line item, allowing for direct and transparent management of the funds. The draft law establishes the legal framework for identifying the amounts owed, making payments, and including them in the state budget, clarifying the historical debt situation and protecting Romania's financial interests.
Through this measure, Romania maintains eligibility for "Dependable Undertaking" status, facilitating participation in international procurement programmes, ensuring transparency in public fund management, and strengthening state responsibility in foreign relations.
The Ministry of Economy will coordinate the process, including transmitting data to the US Department of Agriculture, managing the funds, and applying relevant legislation, thereby completing a process initiated in 1992 and continued through multiple memoranda and previously unfinished legislative projects.
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