How the state pulls the rug from under its own feet at Property Fund

Fondul Proprietatea (Property Fund) lost around 700m RON (170m euros) after state-owned energy company Nuclearelectrica refused to grant it the rest of stock in the share capital, so that the Fund’s stake should reach the level of 20% in Nuclearelectrica set by law. The Fund in late 2009 held total assets worth 12.2bn RON (3bn euros). At the moment the Fund was set up, the Economy Ministry was bound by law to transfer a stake of 20% in Nuclearelectrica to it. In the first stage, the Fund became a shareholder in the energy company with 11.24% and subsequently, because of capital increases and reductions at Nuclearelectrica, the Fund’s stake shrank by around 2%. 60% controlled by the Romanian state, Fondul Proprietatea currently owns 9.72% in the share capital of Nuclearelectrica energy company, where the Romanian state is a majority shareholder with 90% of capital. The difference of around 10% in Nuclearelectrica is worth around 700m RON, with the sum being calculated in line with Nuclearelectrica’s equity capitals recorded in the latest accounting report, of late 2008.