Property Fund shareholders lose 23% of share value

The over two thousand shareholders of the Property Fund (set up to award compensation for properties seized by communists) lost 23% of the value of their stakes as a result of the over 3.4 million-RON losses incurred by the Fund last year, following a revaluation of the share portfolio. The Property Fund ended last year with equity capital worth 11.02 billion RON, 23.7% less than in 2007, reporting a decline in the book value of shares from 1.02 RON to 0.77 RON. The former property owners who were compensated by the Fund with shares worth 1 RON in nominal value incurred substantial losses. Moreover, the management of the Fund is considering a share capital reduction. “One of the options we are contemplating is reducing the Fund’s share capital. We also intend to reduce the nominal value of the shares. All of this will, however, be discussed with the shareholders and with the Government representatives,” said Dana Lulache, general manager of the Property Fund.