Bond market to become attractive in conditions of bank lending contraction
AGERPRES - Romanian News Agency - 26 Noiembrie 2008
Corporate bond market will become increasingly attractive in the period to come under conditions in which the bank lending is contracting, stated Bucharest Stock Exchange (BVB) CEO Stere Farmache at the EU-COFILE seminar in Sinaia (center-south).
'Under conditions in which the bank lending is contracting we can consider some measures of an efficient allocation of resources. The bond market can become more attractive, mainly the corporate bonds', stressed Farmache.
BVB CEO explained that part of investors on the market are confronted with a deficit of resources. 'The capital market can proceed to a more efficient allocation of resources. The bond can be one vehicle set to make the link between the two existing categories, those with a resource deficit and the ones with a surplus', said Stere Farmache.
As well, BVB CEO pointed out that those who will opt for bond transactions on BVB will relate to a greater extent to the interest rates level on the banking market, now at a high level.
RON bonds issued by international financial institutions and listed on BVB could be accepted as collateral, in the case of loans taken by the banks from BNR, added Stere Farmache.
BVB representatives did not establish for the time being the technical solutions for the application of this measure.
Sursa: http://www.rompress.ro
Tags: market
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