FTSE Russell, one of the biggest providers of global indexes and trading data in the world, has decided to place Romania on the watch list for possible reclassification as emerging market.
If Romania achieves emerging market status, this would theoretically bring more foreign investors and more money on the Bucharest Stock Exchange and would allow Romanian companies to get better financing opportunities on the capital market.
Romania is currently a frontier market, but FTSE Russell will consider it for an upgrade to secondary emerging market status on short or medium turn. The upgrade will depend on the progress as regards the market liquidity and the presence on the market of largest companies with significant individual liquidity.
“We are thinking positively about the future, because we have been defining in the right way processes that must have been started and changes that must have been implemented, and, moreover, we had a capability and knowledge to prioritize the execution and not to allow severe mistakes to happen on that road. (…) There are still meaningful problems to be solved, and I hope that the pace of this process, where BVB often needs a constructive cooperation of other institutions, will be fast,” said Ludwik Sobolewski, CEO of the Bucharest Stock Exchange.