World Bank Group Experts say Capital Markets Key to Romania’s Sustained Growth

Romania needs to develop deeper and more liquid financial markets in order to sustain economic growth, according to World Bank Group experts at a capital markets conference in Bucharest today.

The conference was co-hosted by the World Bank Group and Romania’s Financial Supervisory Authority (ASF). It was attended by thirty representatives of the banking sector, regulatory agencies, pension funds, and the government who discussed trends in Romania’s economic growth and the role of capital markets in financial reform and private sector financing.

[i"As the main regulatory body for Romania’s capital markets, we advocate for a regulatory framework that is sound, flexible, and attractive to issuers and investors,”[/i] said Mișu Negrițoiu, ASF President. “We are working towards this goal, and we welcome the partnership and support of the World Bank Group in this effort.”

Participants also addressed the different roles of government and non-government bond markets. They discussed how to create a regulatory framework and a capital market infrastructure that encourage issuers and investors to access markets while safeguarding investors.

“Romania’s capital markets have an essential role to play in sustaining economic growth,” said Bahar Alsharif, Deputy Treasurer of the International Finance Corporation (IFC). “Financial sector reforms that promote deeper capital markets will encourage greater international and domestic investments in the country, supporting private sector development and job creation.”

The World Bank, through the First Fiscal Effectiveness and Growth Development Policy Loan, supports reforms to improve the functioning of capital markets in Romania. The World Bank also provides advisory support to ASF in its institutional reform effort, in order to modernize and deepen the securities, pension, and insurance markets, as well as to promote the adoption of regulatory and supervisory standards that adequately identify risks and mitigate problems in these sectors, while avoiding an over-bearing regulatory burden. IFC will continue to support the strengthening of Romania’s capital markets as an active bond investor.

About the World Bank Group

The World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 100 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development. For more information, please visit www.worldbank.org, www.miga.org, and ifc.org.