Romania's recognition as an Advanced Frontier Market by Morgan Stanley Capital International (MSCI) is a step that strengthens the confidence of global investors in the potential of the Romanian economy, maintains the President of the Romanian Financial Supervisory Authority (ASF), Alexandru Petrescu.
"Romania's recognition as an Advanced Frontier Market by MSCI confirms the sustained efforts of the authorities and market players to align with international standards. It is a step that strengthens the confidence of global investors in the potential of the Romanian economy. Advancing stock market capitalization, increasing the participation of institutional investors in the market and strengthening governance mechanisms remain ASF's top priorities," said ASF President Alexandru Petrescu, in a press release sent to AGERPRES on Wednesday.
According to ASF, this recognition consolidates the upward trajectory of the domestic capital market and confirms the progress made in recent years in terms of liquidity, infrastructure, corporate governance and accessibility for institutional investors.
The intermediate classification, positioned between the current status of "Frontier Market" and that of "Emerging Market" in the MSCI classification, represents a reference point in the medium and long term development strategy of the Romanian capital market. At the same time, it signals to international investors a maturing of the market and a reduction of structural risks, thus facilitating the attraction of capital to companies listed on the Bucharest Stock Exchange (BVB).
The status of "Advanced Frontier Market" will contribute to a better international visibility of the Romanian market, with a direct potential to increase trading volumes and companies' access to financing through the capital market.
"This decision has a strategic relevance for Romania, as it strengthens the positioning of the capital market as a sustainable source of financing for the economy and as a tool for attracting private capital. ASF's role in this process has been to promote a stimulating and predictable regulatory framework, by supporting market reforms and by constantly dialoguing with institutional investors, issuers and international bodies," Alexandru Petrescu said.
About five years ago, Romania was promoted to Emerging Market status by the global index provider FTSE Russell, a recognition that marked an essential moment in the maturing of the capital market. The 2020 classification has facilitated the access of Romanian companies to international capital and has contributed to increasing the visibility and liquidity on the Bucharest Stock Exchange, strengthening the premises for obtaining similar recognition from MSCI.
ASF reaffirms its commitment to support the sustainable and transparent development of the non-bank financial markets, for the benefit of the Romanian economy and all market participants. The non-bank financial sector represents about 12% of GDP and has an impact on 10 million Romanians.
Comentează