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Government stock might hit Stock Exchange in July

Government stock might be listed as of July, given the fact that technical tests for these specific trades are scheduled to start on June 16 and the operation is due for completion by end-June.

Central Depository director-general Adriana Tanasoiu said that representatives of the National Bank of Romania, the National Securities Commission and the Ministry of Economy and Finance (MEF) met on a weekly basis for discussions. Technical tests should start on June 16 and should be over by the end of the month. The due regulation changes then need to be approved and the Ministry needs to decide which stock is eligible. Daily Ziarul financiar cites sources close to the talks as saying that a part of the already issued stock, particularly with maturities longer than one year, might be eligible for bourse trading. MFF will issue an order on the qualification of eligible securities. Finance Minister Varujan Vosganian expressed in May hopes that government stock might be listed as of July instead of September, as initially scheduled. Institutional investors such as pension funds, mutual funds and insurers look forward to this move, as they have only few fixed revenue instruments at hand, that are tradable on the Stock Exchange. Romania liberalized its capital market in 2006, but the secondary market is less developed, with thin bourse trades and limited issues of government stock and hence, scarce portfolio investment opportunities. The Finance Ministry this year focused on short-term financial instruments, as the market produced higher yields following currency exchange fluctuations triggered by global liquidity shortage and inflation going up sharply. The market needs liquid instruments with various maturities to build a long term yield curve. Government stock will be traded simultaneously on the inter-bank market and the Stock Exchange, with the Central Depository settling the deals; the National Bank will act as depository and keep the registrar. Sursa: http://www.rompress.ro

Tags: stock market exchange might government

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