Romania and seven other countries sign MoU to develop capital markets

A Memorandum of Understanding on Capital Market Development was signed between the Ministries of Finance of Bulgaria, Croatia, Poland, Romania, Slovenia, the Slovak Republic, the Republic of North Macedonia, and the Ministry of National Economy of Hungary, according to Radio Romania.

The memorandum regulates institutional cooperation for the development of deeper and more efficient capital markets in the region, to reduce obstacles to cross-border capital flows and facilitate enterprises’ access to financing.

“The development of capital markets in the region will facilitate the mobilization of more private savings for productive investments and sustainable economic growth,” commented the deputy minister of finance of Bulgaria, Metodi Metodiev, during the ceremony held in Zagreb, Croatia.

He mentioned that local ecosystems are essential for providing financing for start-ups and small and medium-sized enterprises, and local investors play an important role in their early years of development.

The connectivity of capital markets in the region will provide local issuers with access to more investors and will lead to increased investment flows, officials added.

The Bucharest Stock Exchange has room to grow. The ratio between the market capitalization of companies listed on the Bucharest Stock Exchange and Romania’s GDP was 20.7% as of December 31, 2024, below the levels recorded in other regional markets, such as Greece (43.7%), Croatia (33.8%), and Hungary (21%), according to the 2025 edition of the study Bucharest Stock Exchange and M&A valuation multiples conducted by PwC Romania.

(Photo source: Inquam Photos | George Calin)