Fondul Proprietatea hijacked from its original purpose

The postponements of the listing of Fondul Proprietatea (Property Fund) on the Stock Exchange in the last two years have led to an increasing sophistication of transactions with FP shares, from newspaper ads through to complex products listed on foreign markets and have hijacked the fund from its original purpose: equitable and transparent compensation of owners stripped of their properties by the communist regime.

The outlet that local authorities offered former owners in 2008, to trade shares of Fondul Proprietatea through the Central Securities Depository became a way in for professional investors such as investment funds and speculators.
By postponing the listing, the various managements of FP in the last two years offered funds and individuals the necessary time to accumulate important stakes in the Fund, while pressing the old owners to sell the shares received in compensation at prices much lower than the 1-RON nominal value at which their compensations were appraised. Therefore, what was intended to be a compensation for the fact that the Fund is not listed on the Bucharest Stock Exchange (BSE) turned into an opportunity for profit for entities that have nothing to do with the process of awarding damages to former owners – the purpose for which the Fund was set up.