The IMF mission to Romania ends today and apparently the government and the IMF agreed for a two months extension of the agreement. According to the media, in its discussions with the IMF the government agreed to sell CE Oltenia to a strategic investor after in a first phase a 15% stale would be sold on the stock exchange until the end of October. A 10% stake in Hidroelectrica would be listed as soon as the company exits insolvency. The process to appoint independent management will continue. The state would sell its majority stake in Electrica, the majority shareholder of power supply and distribution companies Electrica Muntenia Nord Distributie, Electrica Transilvania Nord Distributie, Electrica Transilvania Sud Distributie and Electrica Furnizare until the end of November.

The new commitments of the government indicate that the process of reform and listings of state-owned enterprises, part of which in Fondul Proprietateas portfolio, will continue, which we perceive as positive for Fondul Proprietatea.

Source: bne