CFA Romania Association has outlined the benefits for the state budget and for the functioning of the economy, of listing more state-owned enterprises (SOEs) by public offering of minority stakes. The report addresses the criticism reported by the Social Democrats (PSD) after deputy prime minister Oana Gheorghiu included in a note on the SOEs restructuring proposals for selling more of the state’s shares in already listed SOEs and for listing more SOEs. PSD announced on April 20 plans to submit a draft law to Parliament banning the sale of assets in profitable state-owned companies for two years, despite agreeing earlier to sell minority stakes in the same enterprises as envisaged by the EU-sponsored Recovery and Resilience Plan.
The listing of minority stakes in state-owned companies can bring significant revenues to the state budget, both through the sale of shares and through taxes on earnings and dividends, without the state losing control over the companies, as shown by an analysis carried out by the CFA Romania Association and quoted by Economedia.ro. The CFA Romania Association conveyed that it appreciates the initiation of debates regarding the listing of minority stakes in state-owned companies, considering that the effects on the economy will be favourable. The study also highlighted that listing on the stock exchange leads to more transparency, good governance, and better management of companies.
CEC Bank is the strongest candidate for IPO in the list of state-owned companies, according to a report on state-owned companies eligible for listing on the Bucharest Stock Exchange, presented to the government. A listing of additional stakes of 5-10% in Hidroelectrica and 5-7% in Romgaz, and 5% in Transgaz would bring budget revenues of between RON 5.3 billion and RON 9.4 billion, taking into account the March quotes for the three companies, the same report showed. iulian@romania-insider.com (Photo source: Bucharest Stock Exchange BVB)