Advantages of listing state-owned companies on the stock exchange

Listing profitable state-owned companies on the Bucharest Stock Exchange (BVB) would only bring advantages to Romania, says Adrian Negrescu, an economic analyst and entrepreneur. Its rejection by some politicians with the argument "we are not selling our country" demonstrates a connection with "the circles of interests, with the self-interests and businesses that are controlling these companies", Negrescu explained on Wednesday, June 18.

"The ferocity with which some politicians reject the idea of listing state-owned companies on the BVB is related to the interest circles, the synecdoche and the businesses that control these companies."

"It has nothing to do with the idea of having a strong state, of building an ecosystem of strong, high-performing public companies, capable of facing the competition of private capital," economic analyst Adrian Negrescu wrote on Facebook.

Politicians who reject the idea of listing on the stock exchange have so far done nothing for the success of state-owned companies, he explains.

"If they had wanted something like that, they would not have witnessed with nonchalance the colossal losses at CFR Călători, at Tarom and other public companies, would not have sucked all the profits recorded by state monopoly companies and would have hired efficient managers to develop these businesses, not make them dependent on the state budget. To take blocks of shares to the stock exchange Hidroelectrica, Romgaz, Nuclearelectrica, CEC, EximBank, Bucharest Airports and other companies represent an opportunity especially given that, at the international level, investment funds are looking for safe, future-proof investments," says economist and entrepreneur Adrian Negrescu.

Private investments in state-owned companies in Romania, after their listing on the stock exchange, could be an opportunity that cannot be missed in the current economic context.

"Instead of developing the Romanian capital market, supporting the attraction of foreign investors, we are lamenting in a new episode of the unprofitable soap opera - "We are not selling our country", which has blocked Romania's economic development for almost 10 years. No one is saying that we must cede control in public companies, but if we want to transform these companies, to develop them, attracting private investors, through the sale of minority stakes, must be at the forefront, especially in the international economic context which is, from this perspective, a favorable one", believes the economist.

The effects of listing state-owned companies on the BVB

"From such listings, the state could quickly obtain 15-20 billion lei, money with which to cover the holes in the budget and thus avoid increasing taxes - a measure that will dramatically decrease Romania's economic competitiveness compared to countries in the region, especially Bulgaria, which is switching to the euro. The theory that we will invest public money in these companies to expand their businesses is false given that the state did not even have money to index child allowances and, probably, will not have money for investments in the next 3-4 years at least," says the economic analyst.

The listing of state-owned companies is not the only measure considered necessary by Adrian Negrescu.

"We need legislation favorable to investment capital, both from the perspective of investment funds and the development of industrial hubs, logistics parks, innovation and research. Are we capable of doing this? Or do we only know how to increase taxes and invent new levies?", the entrepreneur concludes his message.

Source https://ziare.com/