Romanian Govt. adopts ordinance for setting up sovereign fund

Romania’s Government adopted on Thursday, November 13, the ordinance for setting up the Sovereign Development and Investment Fund – FSDI, which will have an initial capital of some RON 9 billion (EUR 1.93 billion). The companies that will be included in this fund are to be selected at a later date, finance minister Eugen Teodorovici said, according to local News.ro. The fund will finance startups and investments in industrial capacities, among others, and will help create jobs and develop the local capital market, Teodorovici explained. Among the companies that could be included in this fund are energy companies Hidroelectrica, Nuclearelectrica and Romgaz, forest management company Romsilva, and transport companies Tarom, CFR Calatori, CFR Marfa and the companies managing the main airports in Romania. However, the list is still subject to negotiations in the ruling coalition. The sovereign fund is a project initiated by the Social Democratic Party (PSD) and announced by its leader Liviu Dragnea before the December 2016 elections. Dragnea recently said that the fund should become operational at the beginning of next year. Romania’s ruling coalition partners split over sovereign fund project editor@romania-insider.com (photo source: Gov.ro)