The government has adopted a draft law repealing the provisions of Law 173/2020, regarding the ban, for a period of two years, on the sale of state-owned shares in companies, said Prime Minister Florin Cîţu. Basically, the old law forbade the alienation of any state holdings until the summer of 2022. One of the most controversial effects of the law was the ban on the IPO of 10-15% of Hidroelectrica, a state-owned company that needs transparency and liquidity.
“In today’s Government meeting, a long-awaited bill was approved, especially by the strong side of the economy, by the private economy, a bill that, when it appeared, created a lot of rumor and mistrust in Romania…The current bill repeals that law that suspends a natural thing for a market economy, the right of companies in Romania, those where the state is the majority shareholder, to access private sector funds, to be capitalized with private sector funds. Today we repair this injustice (…) From the first moment I said that we will repeal this law when we’ll take over the governance and today a draft law repealing Law 173 of 2020 was approved,” said Florin Cîţu, quoted by Agerpres.
He added that the bill will be sent to Parliament for adoption.
“It is a very important thing, a clear message for investors, both in Romania and abroad, that this government is a government that supports investments, a government that knows that it needs investments to develop and is a correct signal,” said Cîţu.