The Ministry of Finance, which owns 5.96% of Fondul Proprietatea, has asked to change the agenda of shareholders’ meetings.Franklin Templeton’s term ends next year, so the ministry has come up with some proposals. Essentially, he wants to start the process of selecting an administrator (perhaps no other) for a new mandate, which cannot exceed 4 years.

The justification is “the repositioning of Fondul Proprietatea on a medium- and long-term investment path aligned with the priorities of Romania’s economic development.”

“Fondul Proprietatea can respond to a real need for the development of the financial market – (partial) coverage of local contributions to private investment funds co-financed through the PNRR,” said the document signed by Minister Marcel Bolosh.

In this area, according to the ministry, Romania aims to create up to 20 funds with European funding of 400 million euros and a corresponding need for local co-financing of at least 200 million euros.

In the future, the development of this ecosystem of private equity funds will provide the Romanian industry with a wide competitive, sophisticated and deep palette of investors.

In the context where the mandate of the current administrator expires on 1 April 2024 and the selection procedure can be completed within a reasonable period of 1 year, it is necessary to ensure that the Property Fund is administered during the selection procedure.

“Given that the foundation act of the Fund provides for an administrator administrator for 2 years, it is necessary to amend the foundation act, giving shareholders the opportunity, depending on the strategy presented by the new administrator, to appoint an administrator for a period that cannot exceed 2 years.” – it is also stated in the document.