Introduction

Four years after the creation of the Property Fund ("Fondul Proprietatea" in Romanian) as a means of awarding restitution to former owners of properties confiscated by the Romanian state where in-kind restitution is no longer possible, Fondul Proprietatea still does not represent an effective mechanism in awarding compensation to the victims. This is a stain on the honor of the Romanian state.

As repeatedly noted both in the Romanian media and in the law courts, the Property Fund will accomplish the purpose for which it was created only after its listing on the Bucharest Stock Exchange (in Romanian, "Bursa de Valori Bucuresti", hereinafter "BVB"). Although in 2007, in an attempt to accelerate the process of listing the Property Fund on the BVB, the Romanian Government enacted Emergency Ordinance no.81/2007 ("GEO 81"), the implementation of GEO 81 proved to be difficult, and it is still encountering unnecessary and unwarranted obstacles. (For further reference on the envisaged effects of GEO 81, please visit The Romanian Digest™ Archive at www.hr.ro, i.e. the March 2008 article – "Property Fund Plods Towards Listing".

There is some good news – the 2nd stage of the selection process for the Fund Manager has finally been completed; it is the long-awaited necessary step in the process of listing the Fund on the BVB. But looming ahead are the difficulties associated with the worldwide economic collapse that caused a decrease in the net asset value of the Fund below the share capital of the Fund and may lead to measures that could severely affect both the shareholding structure of the Fund, and also the participations held by the Fund’s private shareholders. Additionally, the musings of certain members of the government in regard to a proposed transfer of Fund assets back to the Romanian State without just compensation has caused c