Ministry of Finance (MF) has developed, in partnership with the Financial Oversight Authority (ASF), a national strategy for the development of the capital market in Romania in 2022-2026, which could earn the Romanian government 2.7 billion lei in additional revenue in 2022, according to a press statement released by the ministry on Friday.
“The primary aim of the strategy was the construction of a set of regulatory measures that would ensure a consistent framework for the development of the capital market. The improvement components included in the strategy are designed to facilitate access to funding, as well as simplifying existing rules and reducing legal uncertainties. The capital market is a good alternative and, we hope, the strategy provides much more accessible access to funding for the private sector,” according to Finance Minister Adrian Caciu.
The strategy has received technical assistance from the Organisation for Economic Co-operation and Development (OECD) and is designed around nine objectives: improving the conditions for listing on the capital market; increasing liquidity on the secondary market; promoting, developing and growing an active market of SMEs; promoting savings among individual investors; increasing the role of institutional investors; facilitating long-term funding through market mechanisms; supporting digital transformation and financial innovation; supporting the development of the local private equity and venture capital market; boosting green investment.
According to the substantiation note, time horizons for the achievement of the objectives was established for each specific objective separately, taking into account, as the case may be, short (1 year), medium (2.5 years) or long implementation terms (4.5 years). The deadline for implementing the entire national strategy for the development of the Romanian capital market is December 31, 2026.
The positive financial impact on the government revenue in 2022 is put at an additional 2.7 billion lei, of which 1.1 billion lei from the profit tax and 1.6 billion lei from the income tax.
In the following years, it should generate government revenues of 3.4 billion lei, 3.8 billion lei, and 3.7 billion lei, respectively.