BNR: Current legislation an obstacle in the bond market development

Mutual funds are demanding a change in bond legislation and National Bank of Romania (BNR) representatives indicated that current legislation is hampering market development.

“Bonds can only be used when the issuer has the necessary budget deficit. Nevertheless, certain measures can be taken for the Romanian Parliament to modify legislation on bond issues,” said Napoleon Pop, member of BNR’s Board of Directors.

Administrators of mutual funds say the bond market is currently very small, and an increase in shares on the market will generate larger transactions and safer investments for stock market investors.