There are state owned companies that don’t know how to use the money obtained from the stock exchange listing and don’t have projects to allow them to capitalize on these funds, declared on Monday Ionut Simion, the head of American Trade Chamber in Romania (AmCham Romania).
“The capital market can be an alternative to raise capital in Romania. If Romania succeeds to be considered an emergent market for investment funds, we could attract implicitly more money that would allow us to put it in the economy,” said Simion.
Simion admitted that the main problem for Romanian state-owned companies is the lack of projects that would enable them to capitalize on the money raised from getting listed.
Until now, there were listed on the Bucharest Stock Exchange companies such as Electrica, Nuclearelectrica, Romgaz, Transelectrica and Transgaz, and the state plans the privatization on the capital market of Hidroelectrica, when the market conditions allow it.
In addition, Cristian Agalopol, member of Board of Directors AmCham, said that the capital market is one of the areas where Romania should capitalize in the near future to make the capital market a financing alternative of the Romanian economy.