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Romania’s Proprietatea Fund Switches To A RON3.4B Loss In ’08

Romania's Proprietatea Fund reported a 3.43 billion lei (EUR1=RON4.2891) net loss in 2008, compared with a net profit of RON313.1 million in 2007, due to write-downs of its financial assets, according to the company's preliminary results.
Romania's Proprietatea Fund Switches To A RON3.4B Loss In '08
27 feb. 2009, 11:37, English

Fondul Proprietatea investment fund, majority owned by the Romanian Finance Ministry, was created in December 2005 to compensate Romanians whose property was seized during the communist regime. The fund’s portfolio includes stakes in 88 of the largest companies in Romania.

The fund’s operating income was at RON488.8 million in 2008, above the expected RON448.1 million, and almost double compared with RON252.1 million a year before.

Thus, its pretax profit before including provisions and write-downs rose 92% on the year to RON472.6 million.

But the fund’s net profit was impacted by writing down RON3.9 billion to reflect its financial assets depreciation.

As a result, Fondul Proprietatea’s assets totaled RON11 billion at the end of 2008, compared with RON14.5 billion a year earlier.