Romania Insider | 16 December 2019
Romania agrees to pay large compensations to Romanian-Swedish investors
Romania’s Government will pay nearly EUR 200 million worth of compensations to Romanian-Swedish investors Ioan and Viorel Micula, based on a decision of the International Arbitration Court in Washington - ICSID.
The Government took this decision to unlock the accounts of Romania’s air control company Romatsa, frozen by the Miculas, as the company risks having its activity blocked, prime minister Ludovic Orban explained, quoted by Hotnews.ro.
The two investors have also put distraints on the Romanian state’s stake in energy companies Nuclearelectrica and Conpet.
In its meeting on Friday, December 13, the Romanian Government supplemented the budget of the Finance Ministry with the amount of RON 912.5 million (nearly EUR 200 mln) from the executive’s reserves fund so that the Finance Ministry can pay the compensations owed to the Micula brothers.
The Government will also revise (for the third time) this year’s public budget on December 16 in order to operate the transfer to the Finance Ministry and further to the investors.
The EUR 278 mln owed to the investors account for more than 0.1% of the year’s GDP, adding to the already high budget deficit of 4.4% of GDP previously estimated.