The Government has approved on Thursday, after heated talks between PSD and ALDE, the draft Emergency Ordinance on the general framework for the establishment of sovereign funds. This is a first step towards the establishment of a sovereign investment and development fund. The next and most difficult step is the approval of a draft Government Decision that provides the establishment of the fund and the companies that will be part of it, hotnews.ro reports.
The Ministry of Finance, the initiator of the draft emergency ordinance, argues in the substantiation note that there is a need for funds because “there is a gap in attracting financial resources available by profitable companies/projects in the form ‘equity’ type tools/investment instruments, in the conditions in which many of the companies that have cost-effective investment projects are highly indebted and need capital to develop/expand, and others are new and are considered risky by banks and are backed by loans only in a certain share.
Finance Minister Eugen Teodorovici stressed on Thursday that the Sovereign Fund will contribute to the development of Romania’s economy. According to Teodorovici, the legal form of organizing these funds is joint-stock companies, and the conditions of operation will be determined by Government decisions, ziare.com reports.
At the same time, the companies included in the Fund will be decided later.
“Sovereign funds will make a decisive contribution to the development of Romania’s economy by providing alternative sources of funding for important investments in infrastructure, industry and capital markets. The legal form of organizing these sovereign funds is that of Romanian joint stock companies in terms of organization and functioning that we will establish separately through government decisions. The funds will be managed in a dualistic system, by a supervisory board and a directorate. The members of the supervisory board are appointed by the General Shareholders Meeting for 5 years,” the Finance Minister said.