THE CUT OF THE DIVIDEND TAX Mircea Ursache, ASF: "We are hoping the government will keep its word"

Mircea Ursache, the vice-president of the Financial Oversight Authority (ASF), said yesterday that he is waiting for the Government to fix the Fiscal Code, by cutting the dividend tax to 5%, in order to show support for investors.

The cut of the dividend tax from 16% to 5%, which was supposed to come into effect on January 1st, 2016, has been postponed until January 1st, 2017, as the president sent the law to the Parliament for reexamination.

However, information started circulating recently that the government is preparing an emergency ordinance to pass this measure earlier.

In the beginning of this month, Agriculture minister, Daniel Constantin, said that the cutting of the dividend tax from 16% to 5% may come into effect starting in 2016, considering that the impact on the budget would only be felt starting in 2017, but the decision would be made by the governing coalition.

Mircea Ursache yesterday said that it is important for the Authority to solve some of the market's problems, together with its players.

Aside from the Fiscal Code, the vice-president of the ASF also mentioned the desire of the ASF to have the two stock exchanges merge.

"I also hope that the BSE will understand the need to have just one market operator", Mircea Ursache said.

Sibex shareholders have been summoned on September 23rd to vote on mandating its Board of Directors to initiate and hold talks with the Bucharest Stock Exchange in order to establish a partnership with it, including when it comes to the aspects concerning the merger, and the results of the talk would be presented in a General Shareholder Meeting.

The merger has been supported through public statements by SIF Moldova and SIF Transilvania, which are among the biggest shareholders of the two exchanges.

"The third issue, which we do not have the support of the NBR, nor that of the Ministry of Finance for, is the Central Counterparty", Mircea Ursache further said, and he added: "I want to inform you that, regardless of the circumstances, the CCP will be created in Bucharest even if it is 100% private".

The stock market community has not yet succeeded in completing the various projects for the creation of a central counterparty, and the European Bank for Reconstruction and Development (EBRD) has presented in June, a project for the creation of a regional counterparty.

The major issue for our country remains the listing of companies, both private and state owned, says the vice-president of the ASF, who further said that the notion of privatization in Romania has to disappear.

According to him, the process for the transfer of the state's properties towards the private sector must be continued exclusively through the Stock Exchange.