What is the stake behind Fondul Proprietatea's listing price?

The price at which the Fondul Proprietatea (Property Fund – FP) will trade on the Stock Exchange is the hottest topic of the moment because the compensation of tens of thousands of former owners depends on the value of shares. For the first time a lawyer raises the hypothesis that former owners will be able to file a lawsuit against the state if the value of shares on the Stock Exchange is lower than the 1-RON nominal value.

This hypothesis undermines the very purpose for which the FP was created, given that the primary obligation of the Romanian state is to compensate the former owners stripped off of their properties by the communist regime.

“Ever since its establishment, the Fondul Proprietatea infringed upon the Constitution and on the Human Rights Convention. It is not legal to give former owners shares that today can be worth 1 RON and tomorrow a hundred RON in compensation for nationalised properties. If the Stock Exchange trading price is less than 1 RON, the former owners can go to court to get the remaining amount they are entitled to. In theory, even those who sold their shares for peanuts before the listing of the Fund can get their rightful compensation in a court of law,” said lawyer Gheorghe Piperea, a professor of commercial law.