AVAS: We still don"t have enough funds to resume the payout of compensatory damages to the victims of the FNI case

M.R. (Tradus de Cosmin Ghidoveanu)
Ziarul BURSA #English Section / 30 martie 2010

At the end of last month, AVAS had only paid out 10% of the adjusted amount of the compensation that it was liable to, according to a recent reply by the Authority for State Assets Recovery (AVAS) to an inquiry by the Parliament. So far, AVAS has paid out 51.5 million lei in compensations to 14329 FNI investors, out of the total amount that it was supposed to pay (526 million lei), which was calculated on February 15th, 2010.

Following fourteen rulings, AVAS was required to pay compensation to 23489 plaintiffs of the FNI case, after according to the law, it took over all of the rights and obligations of CEC (currently CEC Bank), arising from the agreements CEC had entered with FNI and SOV Invest.

AVAS officials claim that at this moment, it does not have enough funds to compensate the investors which were defrauded by the FNI, and voluntary payments (which have been suspended since October 2009) will resume once AVAS" financial situation improves.

The former management of AVAS last year proposed the taking of a EUR 50 million loan from the Treasury in order to secure the funds needed to compensate FNI investors.

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