Resources and withdrawal conditions
FONSIS resources are defined by the articles 7 and 8 of the 2012-34 law of December 31, 2012.
The resources of FONSIS consist of:
- share capital,
- loans or bonds that FONSIS can, in coordination with the Ministry in charge of Finance, raise from banks, financial institutions, financial markets as well as from other State entities;
- the income from financial investments made by FONSIS and other fees collected by FONSIS under its mandate.
- the allocation to FONSIS of part of certain sectors,
- Subsidies and grants that FONSIS can, in coordination with the supervisory ministry, request from friendly countries and institutions.
It is noteworthy that FONSIS may:
- receive state shares in companies; the Minister in charge of Finance and FONSIS sign a convention for the management and/or transfer of Assets, wherein the terms and conditions of the transfer are specified;
- acquire Assets upon approval of its Board of Directors.
- divest from assets that were initially transferred by the State upon approval by its Board of Directors.
- Invest abroad.
They are defined by the article 9 of Law 2012-34 of December 31, 2012.
FONSIS is not allowed to distribute more than 60% of its net income as dividends. Financial reserves are invested in liquid securities of credit-grade sovereign issuers or entrusted to fund managers whose main objective is the long-term preservation of capital.
As from the end of the second fiscal year, the Board sets up the policies, procedures and rules for the constitution of the Generational Fund and shall decide on a year-end basis on the amount to be allocated to it. The latter cannot be less than 15% of the net income. The surplus of the net result is reinvested by FONSIS.
The Government cannot use the reserves during the first ten years of the FONSIS. After this period, the ban is only lifted if there is force majeure. But even then, a maximum of 15% of the total accumulated reserves may be used annually.
No withdrawal can be made unless it is approved by the President of the Republic upon referral by the Minister in charge of Finance, and subsequently ratified by an absolute majority in Parliament.