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Bucharest
November 29, 2020
BUSINESS BUSINESS COMPANIES ECONOMY FINANCE&BANKING

Bucharest Stcok Exchange, 25 years since its reopening. FinMin Citu: We will annul barriers put in Parliament stopping capitalization of Romanian markets on stock exchange

Bucharest Stcok Exchange, 25 years since its reopening. FinMin Citu: We will annul barriers put in Parliament stopping capitalization of Romanian markets on stock exchange

The barriers put in Parliament that stop the capitalization of Romanian companies on the capital market will be annulled immediately after the Parliamentary majority changes, said, on Friday, the Public Finance Minister, Florin Citu.

“What a year you had! A year in which you went to the status of emerging market. So I would say a fantastic year. At the same time two Fidelis issuing, in the same year, of the Finance Ministry, even in a difficult time. It’s a period in which we could have done more if we weren’t stopped by the Romanian Parliament. So today I promise you that immediately after the parliamentary majority changes we will annul those barriers put in Parliament that stop the capitalization of the Romanian companies on the stock exchange. Because that’s what it’s about when we speak of state companies, it’s not about selling, of turning over to foreigners and so forth. It’s about capitalization. It’s about injecting capital in companies to make them more profitable, to keep jobs and to create profit. That’s what it’s about. And that’s what the capital market does and it does best because it does it objectively,” said Florin Citu, at the event titled “25 years of history at the Bucharest Stock Exchange.”

He mentioned that, together with the Financial Supervisory Authority (ASF), the institution is working on a plan to develop the capital market with technical assistance from the Organization for Economic Cooperation and Development.

The Bucharest Stock Exchange is celebrating 25 years since its reopening. The institution of the stock market was re-established in 1995 and on November 20 the first transactions were conducted. In the first session 45 transactions were conducted, with a total volume of 905 shares that belonged to six listed companies. Presently, the BVB has 352 companies listed on the main segment and the Multilateral Transaction System (SMT) and trades daily, on average, over 42 million shares.

The capitalization of Romanian companies listed on the Main Market of the BVB reached, on November 10, 2020, approximately 100 billion RON, or 20 billion EUR, and the capitalization of companies listed on the SMT approximately 10 billion RON (2 billion EUR).

 

President Iohannis: There are clear signs that the economy is returning to the path of recovery

 

President Klaus Iohannis sent, on Friday, a message during the event organized by the Bucharest Stock Exchange (BVB) on the occasion of the anniversary of 25 years of stock exchange activity, stating that there are “clear” signals that the economy is returning to the path of recovery.

“At the beginning of the year, the indicators for financial markets showed that Romania is benefiting from a stable investment climate. Unfortunately, in the context of the COVID-19 pandemic, the economic crisis has made its presence felt in Romania as well, as everywhere in the world. There are, however, clear signals that the economy is returning to the path of recovery. The last statistical data indicate for Romania, as well as for European economies a consistent increase of the GDP in the third quarter, over the previous quarter, when the economy felt the generalized shock of the health crisis. Furthermore, the unemployment rate in our economy is maintained at a little over 5 percent, and on the financial markets investors are keeping confidence in our potential for growth,” states the head of state, in the message which was presented by presidential advisor Cosmin Marinescu.

He showed that Romania will benefit, in the coming years, from European funds totaling 80 billion euro, deeming that it is “a real opportunity to consolidate the economic growth potential.”

“Our economy will start to integrate the benefits of a new development model, based on investments, innovation and competitiveness. Romania will have infrastructure, will invest considerably in digitization and the green transition, will facilitate the creation of entrepreneurial ecosystems and will become more attractive as a business destination. In this sense, some aspects would deserve to be found more eloquently in plans and actions, regardless if they belong to the authorities or the business environment. An essential direction is healthy economic education, the most efficient shield against financial populism, and another, the Romanian capital market, as a real source to finance investments. For example, the option for investments in the green transition and digital transformation, as we propose through the National Plan for Recovery and Resilience, offers new opportunities also for the autochthonous capital market. At the same time, it’s essential for Romania to diversify coherently its financial architecture, in order to not remain stuck in the paradigm in which only the state ‘gives money’ for development,” the head of state mentioned.

President Iohannis congratulated the Bucharest Stock Exchange for its entire activity and the performance obtained.

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