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December 2, 2022

State may sell stocks to repay foreign loans

The state has been massively borrowing from the international financial institutions and may have to sell stocks from its portfolio in order to raise money on a short and medium term to make the payments, Bucharest Stock Exchange (BVB) President Stere Farmache stated at the Capital Market Forum yesterday, according to Agerpres. ‘The divide between us and the other stock exchanges in the region can be bridged if we focus on enriching our supply of financial products to meet the existing demand. I have seen signs of demand consolidation on the Romanian stock exchange’, said the BVB president.

He further added that the Bucharest Stock Exchange would like to trade stock in the parent-companies publicly quoted on foreign stock exchanges which hold major companies in the Romanian financial or telecom industries.

On the other hand, Proprietatea Fund will not list on BVB in the next 3-4 years, the Chairman of the Brokers’ Association, Dan Paul, stated yesterday, during the same event. He explained the current Proprietatea Fund share price had fallen to 25 per cent of the nominal value and that, after it becomes publicly quoted, the state would have to pay four times more in reparations, therefore, in the following 3-4 years, it would run out of resources needed to pay the beneficiaries under the law. In other developments, the first exchange traded fund will probably be launched next summer, after CNVM has amended the regulations on the investment funds’ industry, CNVM Authorisation and Regulation Directorate head Radu Toia stated, according to Mediafax.

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