“The stock exchange will not only benefit from an increase in placement volume, but also through the pressure that funds will put on developing new instruments,” Farmache said.
Prices of titles listed on BVB will not skew following investments made by the private pension funds’ managers, he added. However, these funds will be a signal to companies that are not yet on BVB, and could speed up the entrance of new players on the stock market, according to the BVB general manager.
“Most certainly, the stock market will be one of these funds’ first targets. State owned companies, especially service providers, could become quite attractive for pension funds once listed on BVB,” said President Traian Basescu yesterday, upon the official launch of the so called second pillar of the pensions legislation, meaning mandatory pensions under private administration.
Modernizing the social security system, through the introduction of private pensions, might also lead to a decrease of the black-market labor. Once private mandatory pensions are in effect, people contributing to the funds can no longer accept incomplete documents with partial amounts of their salary declared by the employer, said Basescu. He added the private pension system will contribute to more correctness on the labor market.
