Romanians appear uncertain on the future ownership of IAR Ghimbav as Bell Textron allowed tender extention

Published: 7/5/1999

IAR GHIn a curious move, given its strong comments regarding the final closing date for the offer for IAR Ghimbav, the Romanian government has extended the deadline, by 30 days, for receipt of an offer from Bell Textron for the privatisation of the aircraft company. One day earlier, Romanian media had reported that Bell had not made the purchase of the plant conditional on the Romanian defence forces order for 92 military helicopters being produced by the company. Mr Victor Babuic, Romania's Defence Minister, said that Bell has presented “eight or nine proposals” for “future collaboration,” which are now being examined. Mr Radu Vasile, the Romanian Premier however,has indicated more than once that he now expects a more advantageous offer to be made by the German-French Eurocopter consortium. On June 29th 1999, Mr William Cohen, US Defence Secretary, thanked Romania for supporting the NATO strikes in Yugoslavia, but told his visiting Romanian counterpart, Mr Babiuc that, while NATO's door remains open, “the steps leading to that door are very high”. Mr Cohen said that Romania must cut the size of its military forces and improve training. The USA has presented Romania with a study recommending actions that would strengthen its case for membership. Mr Babiuc claimed that he and Mr Cohen would examine “the strengthening of the defence of Romania's eastern border, making it militarily impenetrable.” His statement is linked to the recent violation of Romanian air space by Russian planes.

Article ID: 654