The reform of the state securities market would reduce the costs of servicing the state debt and would mobilize resources for infrastructure-related projects, say the authors of a study that was presented by the Independent Analytical Center “Expert-Grup”.

The Center’s executive director Adrian Lupusor said the economic development of any country depends directly on the existence of a well-organized financial system that enables to efficiently distribute the resources between those who save and those who invest, IPN reports.

According to the experts, in the national economy there is now no competitor comparable with the commercial banks, which would be able to take over important duties needed to ensure the circulation of capital in the economy. The banks dominate the market of securities issued by the Ministry of Finance in proportion of 78% and make profit that is about 200 times higher than that of all the capital market participants taken together.

The short maturity term of the state securities in circulation (mainly of up to one year) and the current regulatory framework favor the banking sector and generate impediments to the implementation of investment projects, making this sector non-attractive to private investors.

One of the study authors Sergiu Gaibu spoke about the conditions needed to create a modern capital market. He mentioned the free, comprehensive and direct access of professional and non-professional participants to the securities market, existence of a unitary market that would ensure the securities’ unhampered circulation between market participants so that these could be transformed into cash when necessary, possibility of immediately trading in securities bought from the primary market on the secondary market, ensuring of the equity of the fiscal burden, without favoring or providing advantages to particular markets, intermediaries or categories of business entities.

The experts recommend reviewing the fiscal normative framework, eliminating any preferential provisions on the investment of money, adopting modern technological trading solutions and increasing the financial education level of the population.

The presentation of the study involved Minister of Finance Octavian Armasu, National Bank governor Sergiu Cioclea and vice president of the Board of the National Commission for Financial Markets Nina Dosca. These voiced hope that the conclusions and recommendations of the study will represent the start of a long-awaited and necessary discussion on the creation of an alternative to financing through the banking sector.