Romania – getting closer to emerging market status

Bucharest Stock Exchange (BVB) reported on the latest assessment of the Romanian capital market, prepared by FTSE Russel, one of the leading international institutions, analyzing capital markets. According to the FTSE Russel Bucharest Stock Exchange meets eight out of nine criteria required for classification in the Emerging market segment Emerging (FTSE-Secondary Emerging). The sole criterion that remains to achieve is a category of liquidity “liquidity adequate to the implementation of large international investment,” and in practice refers to the need to attract new companies to increase capitalization, free float and consequently share trading. Information is read as a harbinger of promotion of Romania to the “Watch List” by the international rating institutions. “Achieving this goal was made possible by the introduction of a program of modernization of the capital market in Romania, which was initiated in 2013, being implemented by the Stock Exchange in Bucharest, the Central Securities Depository, the Financial Supervisory Commission, government agencies and the Parliament. There is still a strong need to start, State-led, privatization program with the use of the capital market. It is also essential for achieving the objectives of the quality of corporate governance in state-owned enterprises and enhancement of their productivity.” said Ludwik Sobolewski, CEO of the Bucharest Stock Exchange. FTSE Classification Committee provides re-evaluation of the status every six months. Review of the development of the capital market in Romania is subject to periodic evaluation also from MSCI, S&P and Dow Jones Stoxx. The inclusion of Romania on the watch list of international institutions is a strategic objective of the Bucharest Stock Exchange and is associated with the expected effect of the improvement in the perception of the international community. Currently, Romania is classified in the Frontier segment Frontier contains, among other countries Croatia, Bulgaria, Estonia, Lithuania, Slovakia and Slovenia. In September 2008, Poland and Hungary has been promoted from the category Secondary Emerging to Advanced Emerging.   Source: Press Bucharest Stock Exchange, FTSE Russell.Tags: , , ,

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