The requests from the state-run companies, which could include those listed on the Bucharest Stock Exchange, will most likely be made in order to improve the worsening macroeconomic situation, reflected in a 4.4% of GDP deficit, considering Orban promises 3.5% deficit for 2020.
“There are requests sent by the Finance Ministry for dividends from state-run companies. We do not know yet whether they will be paid this year or the next,” said Orban when asked whether his government would request dividends from the subordinated companies, considering Fondul Proprietatea, a minority shareholder of Nuclearelectrica and Hidroelectrica has already requested dividends from the two companies.
Orban on Wednesday met with the representatives of Fondul Proprietatea at the government headquarters but the government press office did not provide any details about the meeting. Orban also met with the European Bank for Reconstruction and Development (EBRD), the largest institutional investor in Romania on Wednesday, and government officials said the two parties agreed on a series of priority actions, such as the listing of the state-run companies.
Orban did not say what companies had received the request for dividends or how much they might pay; he only said Finance Minister Florin Citu, now at the Ecofin Council meeting in Brussels, was able to provide more information on the subject. Citu could not be reached by ZF for comment on the subject, which could trigger a rise of the main Bucharest Stock Exchange index above 10,000 points.
On December 12, the government is expected to decide whether Nuclearelectrica, the operator of the Cernavoda nuclear plant pays about RON512 million dividends to shareholders, of which the government should get RON423 million.
The Energy Ministry on December 17 is due to vote on the allocation of RON1.25 billion in dividends by Hidroelectrica, as called by Fondul Proprietatea. Hidroelectrica is the largest electricity generation company and also the most valuable company of the Romanian government. Of the RON1.25 billion, the government should get RON1 billion.
The two companies alone could pay RON1.4 billion in dividends to the Romanian government. Nuclearelectrica has already said that it cannot afford this payment because it would affect its plans to invest in the retooling of the Cernavoda power plant and may jeopardize other investment projects, as well. (EUR1=RON4.7744)
(English version by Loredana Fratila-Cristescu)