The budget could be quickly supplemented by about 18 billion lei. The solution offered by CFA Romania

The Romanian state could obtain light between 12 billion -18 billion lei in the budget only from the listing of additional shares in state -in -state companies, shows an analysis by CFA Romania, the Association of Financial Investment Specialists.

In a great search for money due to the very high budget deficit, the Bolojan government had announced since July some state -owned companies, but it is not clear when the whole process will start and what the companies listed. Some talk about the listing of airports Bucharest, but we remind that Romania has been employed by PNRR to list at least three state -owned companies by 2026, from the energy and transport sectors.

Dragoș Cabat, the coordinator of this analysis, admits that so far there has been no political will to make the necessary listings. “There was no political will. Because there, as we know, in the board of directors there are politically made appointments. There are extraordinary sources of income for the people put there and then it is very difficult to change these things. As it is as difficult to reduce the expenses from the public administration, local or central. Politics! ”, Says the CFA expert.

For now, the state owns participation in companies listed of about 85 millions.

The BET (Bucharest Exchange Trading) index is around the historical maxims during this period, which can be a good time for selling minority participations that would also allow the control position to maintain, the study makers.

Some examples regarding the sale of minority packages of some state -owned companies, which would bring additional income:

Hidroelectrica (H2O) – The state owns about 80% of the company, through the Ministry of Energy. Even after a 10–15% sale, which could bring between 5 and 8 billion RON budget revenues, the state would remain with a majority control of over 65% and could continue to receive consistent dividends.

Romgaz (SNG) – The state has a stake of about 70%. The listing of an additional 10–15% package could bring between 3 and 5 billion RON, maintaining the state with a comfortable participation of over 50%.

Nuclearelectrica (SNN) – the state currently holds about 83%. The reduction of participation at a level of 67-72%, through a public offer, could generate potential revenues of 1.5-2 billion RON.

The study of CFA Romania also shows that the listing at BVB brings market discipline: companies must comply with strict rules of corporate governance, transparency and financial reporting. Under the influence of private investors, management is more efficient, better controlled costs, and investments are chosen more rigorously. Consequently, companies can make higher profits, which also means higher profit tax collected (currently 16% in Romania).

In addition, the increase of free-flow to a minimum of 25–30% for each large company will lead to inclusion in several international indices (eg MSCI-Morgan Stanley Capital International, FTSE-Financial Times Stock Exchange), attracting passive funds and foreign investments. And the higher liquidity leads by default to several taxes collected from capital and dividends, say the study authors.

The study of CFA Romania can be consulted here.