Bucharest Stock Exchange (BVB) will have access to funds 20-30 times higher, that the businessmen are willing to invest them when it will get the emerging market status, from that of frontier market currently, the President of the Bucharest Stock Exchange (BVB), Lucian Anghel (photo) stated.
“The frontier market is also known as ‘junk’ market, not recommended for investment. There are investment funds which are not permitted to invest in a frontier market where the risks are higher,” Anghel explained at the 5th edition of the Individual Investors Forum in Bucharest.
He reminded that at end-September, Romania has been officially included on the watchlist of countries which have a substantial potential to reach the emerging market status, according to the FTSE Russell decision.
“Thus, we are on a short list, which means that our capital market is likely to be upgraded to the emerging market status. We’re starting to turn a nice story into reality”, Anghel added.
According to him, once upgraded, it’s very difficult to be downgraded as Greece was.
“In terms of quality, we meet the criteria; however we do not meet the quantitative one, which we hope to get it once Hidroelectrica is listed. We believe this approach is a Country Project,” BVB’s President also stated.
Attending the event, Ludwik Sobolewschi, CEO BVB said that joining the emerging market status could take place in September next year.
In early October, Victor Grigorescu, Minister of Energy, said that the listing of Hidroelectrica could occur within six months and may be one of the most profitable listings that the Romanian state has ever made.