Three years after the country was added to the Watch List, FTSE Russell published the results of the annual Country Classification Review for countries monitored by its global equity and fixed income indexes:
Romania, currently a Frontier Market, will be reclassified as a Secondary Emerging Market, effective from September 2020.
FTSE Russell acknowledges Romania on meeting the requirements for attaining Secondary Emerging and Frontier Market status respectively. The reclassification follows market improvements implemented by authorities in the respective countries.
The following criteria was met:
“Liquidity – Sufficient broad market liquidity to support sizeable global investment”: upgraded from ‘Restricted’ to ‘Pass’”
"The liquidity criteria has also been improved as the average daily trading value for equities is up compared to the previous year. We did everything in our power in this limited timeframe to meet all the criteria needed for the upgrade", Adrian Tanase stated, adding that "new projects to further develop the market are in the pipeline”. BVB’s CEO Adrian TANASE said.
Impact on investors: the Romanian capital market enters a new development stage