Ministry of Finance, Financial Supervisory Authority to develop Romania’s new capital market strategy

The Ministry of Finance collaborates with the Financial Supervisory Authority within the joint project on “Developing a national strategy for the capital market”, a project funded by the European Commission through the SRSP Structural Reform Support Program.

The project receives technical assistance from the Organization for Economic Co-operation and Development (OECD) and aims to develop a national capital market strategy that includes a set of regulatory measures to establish a coherent framework for capital market development and access to funding, through legislative improvements / amendments aimed at simplifying existing rules and reducing legal uncertainties.

“The government supports the development of this Strategy which will ensure a coherent development of the capital market, thus helping to finance the national economy and will make a very important contribution to sustainable macroeconomic growth. The capital market is a viable alternative for obtaining the financial resources so necessary for the private environment,” said the Minister of Finance, Alexandru Nazare (photo).

“Romania needs a strong capital market that can finance the development needs of Romanian companies. The strategy, developed in collaboration with the OECD, outlines clear directions of action, which will lead us to a successful and competitive capital market. A strong market economy cannot exist without a suitable stock market,” said the President of the Financial Supervision Authority, Nicu Marcu.

The strategy will present policy directions and issues that need to be addressed to boost the local capital market. During the first stage of the project, the OECD consultant prepared and published the Romanian Capital Market Mapping Report, which included an analysis of the current situation of the Romanian capital market and its structure.

The report is structured on four chapters:

1) the corporate sector,

2) the public capital market,

3) the corporate bond market,

4) the private capital market.

The project will continue with the preparation by the OECD of an evaluation report that identifies the structural aspects and significant barriers for the development of the Romanian capital market and that will also contain draft recommendations. Based on this, the Final Report of the Project on the review of the Romanian capital market will be prepared, containing evaluations and recommendations. This final report will inform and guide the Romanian authorities in the process of elaborating the Strategy.