Reviving the capital market through an augmented attraction of public and Romanian and foreign institutional investors’ savings, as well as raising capitalisation to 30 percent of Gross Domestic Product in 2004 and to 80 percent of GDP by 2007 are important targets of the capital market strategy that was finalised at the end of last week.
This strategy was co-authored by senators Viorel Pana and Ulm Spineanu, deputies Dan Constantinescu, Iuliu Vida, Radu Cojocaru, Constantin Teculescu, the chairman of the National Securities Commission (CNVM) atefan Boboc and the other members of CNVM and representatives of institutions and of some operators involved on this market.
Among steps that will have to be followed to reach the respective targets are increasing the weight of the capital market within the Romanian economy, at present the cumulated weight of the two bourses’ capitalisation being lower than 3 percent of GDP. At the same time, the authors of the strategy consider as necessary the floating of important companies within the following domains: telecommunications, banking, insurance, power, utilities and infrastructure, as well as the improvement of regulations linked to ties among shareholders.
The strategy aimed at the development of the capital market is structured on three general objectives, which are subsequently detailed out on nine specific objectives for which measures (actions) to be engaged are stipulated, as well as the necessary premises within the Romanian business environment.
Point 2.6 of the strategy stipulates the improvement of the operating systems characterising the two Romanian bourses, as well as the interconnecting of systems of the securities market and the national payments system, and ensuring accessibility through Internet networks. As regards ensuring convergence with European standards, the strategy aimed at the capital market proposes the setting up of regulations of Corporate Governance, compulsory for companies traded on the Bucharest Stock Exchange (BVB) and on superior tiers of Rasdaq, including reporting in international accounting systems. For these measures, the adoption of some CNVM regulations is stipulated.
Those involved in the capital market also wish to obtain an adequate and stimulating regime for investments on this market. Measures to be taken for reaching this objective aim at the elimination of restrictions of the current legislative system: the 1 percent tax for trading, the fiscal acknowledgement of losses from investments and the unification of the fiscal treatment of collective placement bodies.