SIF Moldova eyes 2% ownership threshold

Current legislation does not allow investors direct ownership exceeding the 1 percent stock ownership threshold. “The threshold cannot be increased as long as there is a law. A decision by SIF shareholders cannot change the legislation, but SIF Moldova will be signaling that a threshold increase is necessary,” according to a statement for Business Standard by the President of SIF Oltenia, Dinel Staicu.

SIF Banat Crisana already announced it plans to change the threshold as soon as legislation allows.

Brokers have indicated that increasing the threshold would be good for the market. “It would be a positive decision, but it is too early to comment,” said the head of ING Bank Romania’s Capital Markets Department, Florin Ilie. “This could be stimulating for the market. However, we have to wonder who would now want to buy even the one percent maximum package currently allowed,” given the turmoil on international financial markets, which is negatively impacting the Bucharest Stock Exchange (BVB) where the SIFs are listed.

The five SIFs have a total market value of €2.16 billion.