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March 30, 2023

State will no longer pay USD 865 M of Iraq debt to FP

The state will no longer transfer USD 865 M to Fondul Proprietatea (FP) out of the USD 977 M-debt it has yet to recover from Iraq, while 25 other companies, including Dacia, BCR and Rompetrol, will get USD 112 M from Roma­nia’s external claim, Mediafax reports.

Law 247/2005 regarding ownership and judiciary reform set that the sums obtained by recovering Romania’s claims arising from foreign trade activities conducted before December 31, 1989, should be transferred to Fondul Proprietatea.

By a new resolution recently adopted by the Executive, Fondul Proprietatea was struck off the list of beneficiaries entitled to these funds, while maintaining the 25 companies. The decision, prepared as early as last autumn by an emergency ordinance, was motivated invoking the blocks that may arise in FP’s activity, following repeated joint stock boosts due to the transfer of sums obtained by recovering Romania’s external claims. It was also argued that the transfer of fresh funds to Fondul Proprietatea, at this point, which would call for a renewed joint stock boost, abiding by the existing shareholders’ preferential rights, would delay the listing process.

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