The draft law banning the sale of state stakes in national companies and corporations could affect the development of the capital market, according to a press release of the Romanian Association of Financial-Banking Analysts (AAFBR) and the Romanian CFA Association.

“No state can develop sustainably without a strong, liquid and diversified capital market. Listing minority packages in state-owned companies is and must be a priority for three reasons: developing the capital market by listing new companies, increasing the performance of these companies as a result of the requirements of corporate governance and additional revenues to the state budget. The Draft Law on some measures for the protection of national interests in economic activity, PLX 314/2020, which provides for the prohibition ‘for a period of two years of alienation of state participations in national companies and corporations, of banks, as well as to any other company in which the state has the quality of shareholder, regardless of the shareholding held’ can affect the development of the capital market in Romania and does not help the recovery of the economy in this difficult year, post Covid-19, but also in the following years,” it is said in the release of the organizations, quoted by Ag erpres.

The Association of Financial-Banking Analysts in Romania (AAFBR) and the CFA Romania Association consider that there is a risk that the legislative proposal will prove counterproductive and argue that it should not be supported without publicly debated impact studies and without considering its consequences throughout the economy.