SIFs can choose how to register value losses

SIF Muntenia, which has already announced it will set provisions from profit for the depreciation of shares it owns, will not alter its decision. This company had registered smaller adjustments, unlike SIF Moldova, where accounting losses have almost entirely wiped out the 2008 profit. SIF Moldova representatives say they will call a General Meeting of Shareholders to make a decision. The company set provisions worth over RON 130 mln (some €35 mln) which cut its net profit to RON 1.9 mln (some €0.5 mln), 34 times less than the level registered in 2007. This is why SIF Moldova had recommended to shareholders not to pay dividends from last year’s profit.

The other SIFs, Banat-Crisana, Transilvania, and Oltenia, decided to register value losses on their own capitals.

SIF shares gained an average 0.5 percent on the Bucharest Stock Exchange (BVB) yesterday.