Moldovan companies will have easier access to external capital markets
This is provided for by the relevant legislative amendments, which the parliament adopted in the second reading. The legislative initiative belongs to the Ministry of Economic Development and Digitalization, and representatives of the Ministry of Finance, the Organization for Entrepreneurship Development, the National Bank of Moldova and other institutions in the capital market participated in its development. In order to eliminate 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 national legislation with international standards. At the same time, the document transposes a number of European directives in this area. According to the authors of the bill, its adoption will lead to expanded access to financing and a wider investor base, the introduction of higher standards of reporting and transparency, as well as the promotion of economic development. The draft law envisages amendments to 8 laws, which will improve Moldova's image abroad, ensure access to finance, create more opportunities for investors, increase investor and community confidence, simplify reporting standards and bring them in line with international standards, etc. Thus, it is proposed to provide in the Law on Joint-Stock Companies the possibility of changing the list of shareholders in the presence of a court decision or by adjusting the data on the identity of shareholders. Joint-stock companies will be obliged to provide the Single Central Depository with information on the holding of general meetings of shareholders - this will allow creating a list of shareholders in the case of listing abroad, as well as a chain of intermediaries. In addition, this will ensure more effective communication with shareholders. It is also envisaged to introduce the concept of "reporting date" - the date preceding the date of the general meeting, at which a 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 to purchase in the event of the issue of additional shares, which will provide greater flexibility in attracting foreign capital. The Capital Market Law introduces the definition of a “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 change provides for an increase in the total value of the offer, which may be exempt from the obligation to publish a prospectus, from 100 thousand to 1 million euros (equivalent in lei). The law will also be supplemented by a new article on the identification of shareholders whose shares are transferred for safekeeping. The Law on Insurance and Reinsurance Activities will be amended to allow insurance companies to simultaneously hold licenses for “life insurance” and “general insurance” (currently they must choose one of the areas). These changes will open up the insurance market and facilitate the entry of new competitors, thereby providing consumers with a wider choice and more competitive prices. In addition, insurance and reinsurance companies will be able to sell newly issued shares up to 6 times (currently only 4 are allowed), this measure is intended to prevent risks of financial instability. Legislative changes will enter into force on the day of publication in the Monitorul Oficial, with the exception of 2 articles, which will enter into force in 12 months. Herewith, the government will approve, within 3 months, the methodology for determining shares of insurance or reinsurance companies, the purchase of which is recognized as representing public interest.// 21.11.2024 — InfoMarket
