Bucharest Stock Exchange (BVB), took note of the negative effects reflected in major downfalls of the stock market indices as a result of the recently announced Government Emergency Ordinance.
The local capital market, which includes Romanian companies that account for more than 10% of Romania’s Gross Domestic Product, has entered an area that may endanger prospects for future development, including a possible promotion to the status of Emerging Market.
The investors are paying special attention to the actions of policy makers that influence the economic
environment and the evolution of listed companies, a major aspect of the investment process being given by predictability and legislative stability.
The largest drops were recorded by Banca Transilvania (-19.91%), BRD-GSG (-16.62%) and TMK Artrom (-15%).
One of the most important measures announced by the Minister of Finance, Eugen Teodorovici, is aimed at a “greed tax” that will be applied from January 1, 2019 to financial and banking institutions, if the ROBOR rates at 3 and 6 months exceed a certain threshold. The authorities estimate the impact of this measure to three billion lei.
There is also a gas price capping plan, a tax on the turnover for energy and telecoms companies, and changes to the Pillar 2 pension fund.