The Bulgarian government has decided that state companies have to invest 50% of their profits for 2016 on behalf of the state, according to Novinite, which does not provide any further details.

The new decision excludes treatment facilities and water and sewerage enterprises due to the fact that these have fulfilled the preliminary conditions in the water sector for the utilisation of money from European funds.

The dividend must be deposited in the state budget by the end of May.

In Romania, the state must charge up to 90% of the 2016 companies profit. This will highly influence the investment budget of the companies, while a lot of infrastructure needs modernizing badly.

An analysis by Tradeville shows that, in the last weeks, the quotations for utilities were animated by the decision that obliges the state companies to distribute at least 90% of last year’s profit as dividends (or payments), compared to a minimum of 50% valid until now, says Georgiana Androne, investment analyst at Tradeville.

Autor: Bogdan Tudorache

Active in the economic and business press for the past 26 years, Bogdan graduated Law and then attended intensive courses in Economics and Business English. He went up to the position of editor-in-chief since 2006 and has provided management and editorial policy for numerous economic publications dedicated especially to the community of foreign investors in Romania. From 2003 to 2013 he was active mainly in the financial-banking sector. He started freelancing for Energynomics in 2013, notable for his advanced knowledge of markets, business communities and a mature editorial style, both in Romanian and English.