The Romanian Lottery and the National Printing House are the first two companies that the state proposes to include in the Sovereign Investment and Development Fund (FSID), according to a draft law published by the Ministry of Finance, quoted by Mediafax.

The Government plans to contribute to such FSIDs the stakes that it still holds in key companies mainly in the energy sector. However, a new law must be issued to allow the transfer of companies from public property of the state to the private property of an investment fund controlled by the state, the Government explained.

The legal complications seem higher than envisaged initially when the legal framework for FSIDs was passed last year since the Government now proposes amendments to the emergency ordinance that regulates the functioning of the FSIDs (OUG 100/2018).

The proposed amendments regard an exotic mechanism by which a company in the private ownership of such a fund can be transferred free of charge to the state’s public property (in case it merges with another public administration company). Separately, the central government will no longer appoint a member in the supervisory board of the FSIDs, and the FSIDs’ shareholders’ meeting will entirely decide the board members' pay.

editor@romania-insider.com

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