AmCham: Romania’s capital market upgrade to emerging market status sends a positive signal to investors

Aurel Constantin 22/09/2020 | 13:37

AmCham Romania joins private partners and the authorities in welcoming Romania’s upgrade to secondary market status by FTSE Russell, the world leader in stock market indexes classification. This marks the achievement of a shared strategic goal pursued with dedication by the private stakeholders and regulatory authorities alike.

“AmCham Romania primarily focuses on supporting initiatives that contribute to increasing the investment flows in Romania, such as the upgrade of the capital market. The promotion by FTSE Russell sends a positive signal towards the investors’ community, but is also an encouragement for all parties involved so far in making this goal a reality to continue their collaboration, which remains as necessary after this long-awaited moment. The upgrade to emerging market opens Romania’s access to significantly higher investment flows and allows us to play in a higher league. This comes in a context of global economic turmoil, which can only send a positive signal to current and potential investors and is expected to have a multiplier effect on the economy” said Ionuț Simion, AmCham Romania President.

Romania’s qualification for secondary emerging market status, after a three-year monitoring period, announced in September 2019 and applicable from September 2020, confirms the removal of barriers and improvements in the quality of trading infrastructure and of the regulatory framework.

“I would like to reiterate that the success we welcome today proves that through partnership and cooperation we can achieve positive results for the economy at large. At the same time, it holds all of us responsible to remain committed towards the immediate objectives for the Romanian capital market, such as upgrade to emerging market status by MSCI. Midterm, in AmCham’s vision, the development of the capital market should focus on meeting the next level of performance needed to qualify as primary emerging market, and eventually, the upgrade to developed market status. In this regard, we will strongly support the need for state-owned enterprises to be listed, which in addition to the benefits of attracting capital inflows, will create the framework for consolidating their corporate governance. The development of the capital market will also need measures to incentivize the listing of private companies, as a means to diversify their financing sources, which requires both vision and a favorable, stable legislative and fiscal framework, for which we rely on the involvement of the responsible authorities”, pointed Cristian Agalopol, Chair of the AmCham Romania Capital Markets and Financial Services Committee.

FTSE Russel performs an annual review of the countries’ classification in the four categories – developed markets, advanced emerging, secondary emerging and frontier, by analyzing 21 criteria that are related to the regulative framework, custody and settlement, dealing landscape, derivatives.

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