.jpg)
On the capital market and investment side, the new Code stipulates lower tax rate for dividends at 5% and recognizes lending and borrowing of securities, as well as short selling transactions. Bucharest Stock Exchange (BVB), leading the work for eliminating barriers which stand against the development of the capital market in Romania, has been deeply engaged in the improvements of the fiscal rules.
“The new provisions of the Fiscal Code and of the Code of Fiscal Procedure give more opportunities for investors. Intermediaries will be able to offer to their clients new types of transactions and fund managers will have a possibility to more effectively manage the assets. However, we, as the whole economy, lose millions of euro of investments because of the lack, for instance, of electronic fiscal registration of foreign investors. This problem must be solved by the public administration. The reduced flows of capital affects negatively the savings of Romanian citizens who already invest on the capital market. We also expect the new regulations on short selling and lending and borrowing of securities to be assorted with the new secondary legislation. This is one of the most urgent problems to be finally solved.” stated Ludwik Sobolewski, CEO of the Bucharest stock Exchange.
BVB's strategic objective is to develop the local capital market, in order to be upgraded from Frontier to Emerging Market status. To achieve this important goal, the Romanian authorities together with the working group lead by the Bucharest Stock Exchange embarked to an ambitious journey and for almost a year and a half are implementing a comprehensive programme to improve the functioning of the local capital market, enhance liquidity and increase the availability of capital market products. It includes measures to streamline regulatory processes and increase efficiency within the pre-trade, trade and post-trade environments.
“The lower tax rate on dividends increases the attractiveness of the investments for all groups of investors. However, the regulations important for the market must evolve at a faster pace and come up simultaneously, to strengthen the positive impact. Building a competitive capital market consists not of introducing insulated changes from time to time, but of connecting the dots” said Ludwik Sobolewski.
More details on the status for eliminating the barriers and improving investors’ access to the market are available in the BVB IR Presentation.
