The largest Romanian investment fund Fondul Proprietatea wants more cash from state-owned companies, Ziarul Financiar commented reporting that FP asked power producer Hidroelectrica to pay RON 1.25 billion (EUR 263 mln) worth of extra dividends, on November 13, after demanding RON 513 million (EUR 107 mln) from Nuclearelectrica.

These extra dividends would come on top of the regular dividends already paid by the two companies from last year’s profits and would be covered from their reserves.

Fondul Proprietatea would receive RON 250 mln (EUR 52.6 mln) from Hidroelectrica, where it holds a 20% stake, and some RON 46 mln (EUR 9.7 mln) from Nuclearelectrica, where it holds close to 9% of the shares.

Hidroelectrica’s shareholders are summoned on December 17 to approve the dividend. Two days later, Nuclearelectrica’s shareholders will also vote on Fondul Proprietatea’s proposal.

The Government, as the majority shareholder in the two companies, has the final word.

Representatives of the National Liberal Party (PNL), until recently in opposition, have constantly criticized the Social Democrat cabinets for squeezing cash out of the state owned companies and not leaving them the financial resources for development.

This time, however, the Government is in acute need of cash as well. However, the RON 1.4 bln of dividends the state would get from the two companies account for only 0.1% of GDP therefore would make not much difference compared to the RON 21 bln unrealized revenues reported by finance minister Florin Citu as inherited from the Social Democrat cabinet.

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editor@romania-insider.com