New stake at Fondul Proprietatea: who gets their compensation file processed first

In the absence of a transparent mechanism, the files selected to be dealt with first are those involving properties transferred to third parties for merely 10-20% of their value, while the real owners wait four or five years to get their deeds.

Along with the grey market of Fondul Proprietatea (Property Fund – FP) shares, the market of compensation files registered with the National Property Restitution Authority (ANRP) is growing, with hundreds of files “traded” every year.

In the waiting queue at ANRP are files submitted as far back as 2006, yet the institution’s employees find various reasons to dismiss them. On the other hand, newly submitted files may be accepted. There is no transparent file selection mechanism.

Since Fondul Proprietatea seems closer to floatation than ever, there has been an increase in buying and selling compensation files, because the new owners will be able to sell their shares on the Stock Exchange, after having bought the files from the former owners at as little as 10% of the compensation value at times.

“This year I brokered deals with 15 or 20 files. I buy them from former owners and resell them. It’s like a second job. A file without ANRP’s valuation sells at 15% of its value, and if it has a yellow ruling (the final compensation award ruling) in it at 25%,” said R. Ioni]`, one of the people who posted a buy ad on the Internet.

Selling and buying such files borders on the illegal, so that brokers prefer to say the former buyers transfer rights to their files instead.