Green light for Sovereign Development and Investment Fund establishment

The Government decided in its meeting on Thursday to adopt a memorandum on establishing the Sovereign Development and Investment Fund (FSDI), the Economy Minister Alexandru Petrescu announced.

FSDI is an economy stimulation measure, an investment funding instrument in competitive, profitable and sustainable sectors, with a multiplication effect in economy, going to attract capital and financial market sources, Alexandru Petrescu also stated.

According to him, FSDI will represent ‘a partner for international investors’, such as the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the World Bank (WB), investment funds and other private investors.

Petrescu added that Gov’t further formalized the founding of some inter-ministerial committees, with representatives of the Economy Ministry, the Finance Ministry, the Competition Council, the Financial Supervisory Authority (ASF).

“(…) This is the day we formalize the demarche, starting tomorrow these committees will gather formally, (…) issuing points of view,” Economy Minister stated, adding “the next step will be another normative act, with the constitutive act in the center, where we will have the exact functioning and structure mechanism of the fund”.

The FDSI will contribute both to Romania’s efforts to gain the statute of an emergent market for the domestic capital market, by growing liquidities on the Bucharest Stock Exchange (BVB), as well as to the growth of the absorption level of non-refundable European funds by ensuring the co-funding financial sources of the investment projects, the Government release points out.

The Romanian state, through the Economy Ministry, will be the sole shareholder throughout the functioning period of the FSDI.