Romanian Govt. to ask state companies for over EUR 300 mln extra dividends

Romania’s prime minister Ludovic Orban confirmed in a telephone discussion with financial daily Ziarul Financiar that his Government will send requests to state-owned companies for extra dividends worth about RON 1.5 billion (over EUR 300 mln), but it is unsure whether the payments will be made this year or in 2020.

On Wednesday, PM Orban met representatives of local investment fund Fondul Proprietatea, which holds minority stakes in some of the most profitable state companies. The Government’s press office did not provide details on this meeting, Ziarul Financiar daily added.

FP has already asked several state companies, including electricity producers Nuclearelectrica and Hidroelectrica, to pay supplementary dividends, but the final decision belongs to the state, which holds the controlling stakes. The state would derive supplementary dividends in amount of RON 1.4 billion (over EUR 290 mln) from these two companies alone, if it backs the fund’s proposals. The management of Nuclearelectrica explained, however, that such payments would hurt its investment capacity at a key moment for its development.

Orban did not mention the companies to which his cabinet would send requests for extra dividents but said that finance minister Florin Cîţu would be able to provide more details on this topic.

(Photo source: Gov.ro)