SIMILAR ARTICLES

Mugur Isarescu: “Ordinance weird thing” reduces monetary policy efficiency, which will not help Government

The National Bank of Romania (BNR) will convoke the National Committee for Macro-prudential Supervision, where the Ministry of Finance will be required to clarify the… Mai mult

World Bank lowered prospects on Romania’s economic growth for 2019 and 2020

  Romania’s economy will record an advance of 3.5% in 2019 and 3.1% in 2020, down one percentage point from June 2018 forecast, according to… Mai mult

Iasi – Tg.Mures highway disappeared from Large Infrastructure Operational Programme 2021-2027

The Ministry of European Funds has taken out Iasi-Tg. Mures highway project from the Large Infrastructure Operational Programme 2021-2027 and the Ministry of Transport already… Mai mult

State is borrowing at increasingly higher costs – government bond yield reached 5.33% per year

The benchmark government bond yield jumped above the 5% threshold on Thursday. The Ministry of Public Finance (MFP) attracted RON 300 million from banks on… Mai mult

Senate postpones discussions on DNA’s request on waiving immunity of Calin Popescu Tariceanu until February 2019

The Senate has decided that it will put to the vote the decision to waive Calin Popescu Tariceanu’s immunity only in the spring session, that… Mai mult

Cronicile

Sovereign Fund gets legal base. Details announced by Minister Teodorovici

de Victor Bratu , 19.11.2018

The Government adopted on Thursday the ordinance that provides for the general framework for the establishment of a Sovereign Fund.

Later, after new talks with ALDE coalition partners, Social Democrats will also impose a government decision to establish the famous Sovereign Development and Investment Fund, one of the priorities from the government program drafted by Darius Valcov.

Prime Minister Viorica Dancila announced at the beginning of the meeting at Victoria Palace that this “financial instrument for supporting Romania’s economic development” is needed.

Minister Eugen Teodorovici: The Fund can sell companies from portfolio on the Stock Exchange

The Finance Minister explained on Thursday that the companies from the Sovereign Fund could be listed and sold on the Stock Exchange in a proportion of over 51%. The state will have only two representatives out of nine in the Fund’s management and its governance will be ensured based on the OUG on corporate governance.

The main remarks made by the Minister of Finance:

  • The purpose of the Fund is not the privatization of companies. The fund will be active in PPP participations and will help the financing of start-ups, increase companies’ competitiveness, create jobs, develop human capital, etc.
  • OUG 109 provisions on companies’ corporate governance will be followed.
  • It will be possible to sell more than 51% of the companies’ capital by listing them, without an upper limit, as this is the practice for other funds and to demonstrate to EU authorities that there are no bureaucratic limitations created by the state.
  • The companies that will be included in the Fund will be decided next week. The state had only two representatives of the nine members of the Sovereign Fund’s management.
  • Viorica Dancila stressed that there will be projects implemented including by public-private partnerships.

Such a development model, successfully applied in other countries, brings benefits at several levels, by profitable investments and supporting projects in priority areas. By establishing sovereign development and investment funds we aim at creating some vehicles of financial investment and intermediation, shares or participations in profitable projects or companies, a segment that currently is not covered by the financial market in Romania, which, on the one hand, would have a multiplier role in the economy, for a sustainable development and, on the other hand, would stimulate, mobilize available financial resources toward the real sector and, at the same time, toward profitable projects. The activity of the fund will support development areas and activities such as: financing Romanian companies of a strategic importance, investments in manufacturing industry, investments in infrastructure projects, increasing Romanian economy’s competitiveness, pursuing the energy strategy, capital markets. There are large-scale projects that we can develop together with other institutional or private investors, including by participating in public-private partnerships, as we have committed within the government program,” Viorica Dancila said on Thursday.

On Tuesday, Finance Minister Eugen Teodorovici said the draft Emergency Ordinance on the Establishment of the Sovereign Development and Investment Fund has received all the necessary approvals. He said that after the adoption of the OUG, new talks will take place within the coalition, with ALDE, on the list of companies that will be included in the sovereign fund.

On 10 November, the Finance Ministry launched for the public debate the framework draft for the establishment of sovereign funds and invoked “an extraordinary situation whose regulation cannot be postponed, as immediate actions need to be taken by the means of emergency ordinance.”

PSD President Liviu Dragnea announced on November 3, after hours of talks with ALDE leaders, that the ordinance for the establishment of the Sovereign Fund “will be adopted in the first government meeting”.

In July, the Constitutional Court upheld all the objections raised by the opposition and President Klaus Iohannis on the Law on the establishment of the sovereign development and investment fund, issued by the Parliament and stated that such a Fund should be established by government decision.

The draft approved by the Parliament indicated that 33 large state-owned companies and a capital injection of RON 9 billion are to be managed by an institution whose leaders will be appointed by the Government.

Mergeți în homepage ›

Publicat la data de 19.11.2018

Lăsați un comentariu


NEWS

Mugur Isarescu: "Ordinance weird thing" reduces monetary policy efficiency, which will not help Government

The National Bank of Romania (BNR) will convoke the National Committee for Macro-prudential Supervision, where the Ministry of Finance will be required to clarify the… Mai mult

World Bank lowered prospects on Romania's economic growth for 2019 and 2020

  Romania's economy will record an advance of 3.5% in 2019 and 3.1% in 2020, down one percentage point from June 2018 forecast, according to… Mai mult

State is borrowing at increasingly higher costs - government bond yield reached 5.33% per year

The benchmark government bond yield jumped above the 5% threshold on Thursday. The Ministry of Public Finance (MFP) attracted RON 300 million from banks on… Mai mult

Iasi - Tg.Mures highway disappeared from Large Infrastructure Operational Programme 2021-2027

The Ministry of European Funds has taken out Iasi-Tg. Mures highway project from the Large Infrastructure Operational Programme 2021-2027 and the Ministry of Transport already… Mai mult

Senate postpones discussions on DNA’s request on waiving immunity of Calin Popescu Tariceanu until February 2019

The Senate has decided that it will put to the vote the decision to waive Calin Popescu Tariceanu's immunity only in the spring session, that… Mai mult

Implementation of 5G technology, a multiplication effect in economy of EUR 4.7 billion - announces Sorin Grindeanu (ANCOM)

The National Authority for Management and Regulation in Communications (ANCOM) launched on Wednesday the National Strategy for the Implementation of 5G Technologies in Romania for… Mai mult

FIC: Amendments on Criminal Codes expose business environment to abuses from civil servants

Some of the amendments to the criminal codes will generate mistrust regarding Romanian state's ability to ensure the legality, stability and predictability of business relationships… Mai mult

European Semester / European Commission asks Romania to correct its medium-term structural deficit by 1% of GDP

Minister Eugen Teodorovici is pressured by the EU to reduce the budget deficit After finding that the Government has done nothing to adjust the deviation… Mai mult

Sovereign Fund gets legal base. Details announced by Minister Teodorovici

The Government adopted on Thursday the ordinance that provides for the general framework for the establishment of a Sovereign Fund. Later, after new talks with… Mai mult

Ford is looking for 1,700 employees to produce EcoSport SUV model

The representatives of Ford Craiova met on Wednesday with mayors of 30 localities from Dolj county in order to stimulate the attraction of 1,700 new… Mai mult

Development strategy / Government squeezes even investment money from its own companies: EUR 120 million from only two entities in energy field

Nuclearelectrica (SNN) and Romgaz (SNG) have calculated the additional dividends to be paid to the state after the Ministry of Finance (MFP) sent to the… Mai mult

DNA, officially: Senate President is suspected of having received a USD 800,000 bribe. Case file opened at a request from Austrian judicial authorities

The case file in which the DNA requested the waiving of the Senate President’s immunity was opened at the request of Austrian judicial authorities and… Mai mult

Illegal state aid / European Commission demands Romania to recover EUR 60 million from CE Hunedoara

Romania has to recover illegal state aid worth EUR 60 million granted to Compexul Energetic Hunedoara, announced the European Commission with a statement released on… Mai mult

Ministry of Finance planned loans of RON 4.74 billion in November. Costs are increasing

The Ministry of Public Finance (MFP) intends to borrow in November RON 4.74 billion, 1.4% more than in the previous month, according to the Ministry.… Mai mult