Econ Crisis Shouldn’t Block State Cos’ Stock Mkt Listing – BVB Head

„We are rather surprised to hear mixed information coming from the authorities as regards listing the state-own companies on the bourse. Nobody can predict the economy’s path during the next years, and that is why we should not abandon these projects,” Farmache said during a seminar organized by Ziarul Financiar newspaper.

Earlier this month, the government decided to suspend by December 31, 2012 the procedures listing on the Bucharest bourse a 5% stake in eight companies owned by the Transport Ministry, due to the economic crisis.

The eight companies that had to be listed on the bourse are: international airports Henri Coanda in the capital city Bucharest, Aurel Vlaicu-Baneasa, Mihail Kogalniceanu-Constanta and Traian Vuia-Timisoara, canals navigation company Administratia Canalelor Navigabile Constanta, and maritime harbor administrations Administratia Porturilor Dunarii Maritime Galati, Administratia Porturilor Dunarii Fluviale Giurgiu and Administratia Porturilor Maritime Constanta.

The government has recently decided to freeze the procedures until the end of 2012, as the value of the new listed shares might be diminished by the current economic crisis.

However, according to Farmache, the state-owned companies’ privatization through the bourse is efficient and safe, and contributes to increasing the stock exchange’s capitalization.

Privatizations through the Bucharest Stock Exchange may have a stimulating effect over the private local companies, Farmache added.

„We are not directly involved in any privatization, we just want to offer technical assistance (…) We should follow the example of Poland, where the capital market was used as a privatization vehicle,” he said.