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Prime Minister Ludovic Orban said on Monday that Romania's transition to Secondary Emerging market status shows a positive evolution of the Bucharest Stock Exchange (BVB), but stressed that this evolution is still "timid".
"The fact that Romania today is moving to the status of a secondary emerging market shows a positive evolution of the Bucharest Stock Exchange, but, in my view, a still timid evolution and for this reason our intention, as a Government, is to support the further development of the stock market, the capital market," Orban said at the event "Emerging Romania" , organized by the Bucharest Stock Exchange.
He pointed to the targeted measures on the development of the capital market: the listing of new state-owned companies at the stock exchange, stimulating the participation of individuals in the capital market by simplifying tax procedures for retail investors, launching new programmes of government securities issues through the stock exchange - stating that such issues worth 1 billion lei and 168 billion euros have already been launched - , encouraging through fiscal incentive measures private companies to list at the BVB for diversification of sources of financing.
"If we look at the financing of companies we will see that in Romania we are far from the capitalist model in developed countries where a large part of the companies' financing is carried out from the stock market. Our objective is to develop this fundamental instrument for the market economy that is the Stock Exchange," Orban said.
The Prime Minister also announced that after the parliamentary elections the objective is to change the law on the stock market.
"In the process of developing the stock market, unfortunately, a law appeared, why it was adopted I cannot understand, we also attacked it at the CCR [the Constitutional Court of Romania], unfortunately we were not given justice, which somewhat blocks the sale of assets, shares, affecting the stock exchange listing processes of important companies such as Hidroelectrica that we started. It is clear that the current structure of Parliament cannot allow the amendment of this law, but after the elections [due this December, ed. n.] our objective is to amend this law," he said.
