Companies from Moldova will have easier access to foreign capital markets
This is stipulated by the relevant legislative amendments, passed by the Parliament in the first reading. The legislative initiative belongs to the Ministry of Economic Development and Digitalization, and representatives of the Ministry of Finance, Entrepreneurship Development Organization, National Bank of Moldova and other capital market institutions participated in its elaboration. In order to remove regulatory barriers in the conditions of access of investors and local companies to the external capital market, they proposed to adopt a set of measures that will facilitate this process and harmonize the national legislation with international norms. At the same time, the document transposes a number of European directives in this area. According to the authors of the draft law, its adoption will lead to greater access to financing and a broader investor base, introduce higher standards of accountability and transparency, as well as promote economic development. The draft law envisages amendments to 8 laws, which will lead to improving Moldova's image abroad, ensuring access to finance, creating broader opportunities for investors, increasing investor and community confidence, simplifying reporting standards and bringing them in line with international standards, etc. Thus, it is proposed to provide in the Law on joint-stock companies the possibility to change the list of shareholders in the presence of a decision of the lender or by adjusting the data on the identity of shareholders. Joint-stock companies will be obliged to provide the Unified Central Depository with information on holding general meetings of shareholders - this will allow creating a list of shareholders in case of listing abroad, as well as a chain of intermediaries. In addition, this will ensure more effective communication with shareholders. It also provides for the introduction of the concept of “reporting date” - the date preceding the date of the general meeting on which the list of shareholders entitled to participate and vote at the general meeting will be compiled. The draft law introduces the possibility of waiving the pre-emptive right of purchase in case of issuing additional shares, which will provide greater flexibility in attracting foreign capital. The Capital Market Law introduces a definition of “closed offer (closed issue)”, which will be understood as the placement of securities between shareholders or associated persons of the issuer and/or in a limited circle of persons approved by the general meeting. Another amendment provides for an increase in the total value of the offer, which may be exempted from the obligation to publish a prospectus - from 100 thousand to 1 million euros (equivalent in lei). The Law will also be supplemented with a new article on the identification of shareholders whose shares are deposited. The Law on Insurance and Reinsurance Activity will be amended to allow insurance companies to simultaneously hold licenses for “life insurance” and “general insurance” activities (now they must choose one of the directions). These changes will open up the insurance market and make it easier for new competitors to enter the market, thereby providing consumers with greater choice and more competitive pricing. In addition, insurance and reinsurance companies will be able to sell newly issued shares up to 6 times (now only 4 are allowed), a measure designed to prevent risks of financial instability. The approval of the draft law is envisaged by the “European Moldova 2030” National Development Strategy and the National Program of Entrepreneurship Development and Competitiveness Enhancement for 2023-2027. The draft law is yet to be passed by the Parliament in the second reading. // 08.11.2024 - InfoMarket.
