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December 1, 2022

BVB’s Anghel: Government has to request structural funds to offer companies going public money

The Government has to request structural funds to offer stock-exchange listed companies money, as it happens in other countries, the president of the Bucharest Stock Exchange (BVB), Lucian Anghel declared on Thursday, in a debate regarding capital market development strategies for the Country Project initiated by the Presidential Administration.

“I think it’s a good idea to have a single element within the government with whom to discuss Initial public Offering (IPOs) development. Fiscal measures represent another objective for stimulating long-term investment. We are discussing eliminating the CASS [social and health insurance], lack of taxation for revenues, a series of facilities that other countries provide for companies that intend to go public on the stock market. There are countries that offer money for companies to go public through structural funds. Who has to make the request? The Government has to request structural funds. We all need to speak the same language for future governments to ask for and to include within structural funds the requirement that a company going public can benefit from financial support. If this can take place in other countries, I don’t understand why that cannot happen in Romania as well,” Anghel said.

According to him, a company that goes public should benefit from tax deduction.

“If a Romanian entrepreneur takes a loan from a bank, the interest is deducted from the net profit and from the tax he pays to the Romanian state. The interest is fiscally deductible. If a company goes public on the stock exchange and attracts capital through IPO it has no benefits, although the equivalent of the interest should normally be deductible fiscally. We need to share this information with as may people,” the president of BVB also affirmed.

In a debate on Thursday, representatives of the capital market will propose development strategies for the Country Project initiated by the Presidential Administration.

The debate, organized by the PR Agency Concord Communication, represents a private initiative and there is no involvement from the organizational point of view of the Presidential Administration. The purpose of this debate is to collect ideas and proposals for the development of the capital market sector on the part of the organizations within this industry and conclusions will be included in a material at the disposal of all deciding factors in public administration.

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