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February 4, 2023

World Bank: capital markets, key-element for Romania’s sustainable economic growth

Romania must develop stronger and more liquid financial markets to support economic growth, World Bank experts said told a conference on capital markets, which was held in Bucharest.
Some thirty representatives of the banking sector, regulatory agencies, pension funds, and of the Government attended this conference hosted jointly by the World Bank and the Financial Supervisory Authority (ASF), where they discussed Romania’s economic growth trends and the role of capital markets in the financing reform and funding the private sector, reads a World Bank release.
‘In our capacity as main regulatory body for the capital markets in Romania, we advocate for a strong, flexible and attractive regulatory framework both for issuers, as well as for investors,’ said ASF President Misu Negritoiu. ‘We hail the partnership and the World Bank’s support in this regard,’ said Misu Negritoiu.
The participants also addressed different roles of government and non-government bond markets. They discussed how to create a regulatory framework and an infrastructure of the capital market to encourage issuers and investors to access these markets and protect investors, at the same time.
‘Romania’s capital markets have an essential role in sustainable economic growth,’ said Bahar Alsharif, Deputy Treasurer of International Financial Corporation (IFC). ‘The reforms in the financial sector which promote stronger capital markets will encourage the growth of domestic and international investments in Romania by supporting private sector development and job creation,’ added Bahar Alsharif.
The World Bank, through the first development policy loan for streamlining public finances and economic growth, supports the reforms aimed at improving the functioning of capital markets in Romania.
Also, the World Bank provides technical assistance to  the ASF in its efforts regarding institutional reform aimed at modernizing and deepening the markets of securities, pensions and insurance, as well as promoting the adoption of regulatory and supervisory standards through which risks are adequately identified and the problems in these sectors are lowered, at the same time avoiding an overload with regulations. The IFC will continue to support the strengthening of the capital markets in Romania as an active investor in bonds.

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