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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2008MOLDOVAN STOCK EXCHANGEAs for dynamics of development, the year2007 is characterized by the increase of theexchange indicators.Dr. Corneliu DoduPresidentWithin the bounds of integration of theRepublic of Moldova in the European Union,with the purpose of the implementation of newinstruments in order to attract investments inthe country and for market integration; fruitfulwork has been completed in adopting newlaws and modifications of the existinglegislation on Stock Exchange Market in 2007.A new law has been approved regarding theNational Commission of Financial Market (it’screated the Megaregulator) and a newmember to the Administrative Board of thefinancial market has been assigned. The codeof corporate governance has beenimplemented. The new laws of audit andaccounting activities have been initialized, aswell as many normative and legislative acts inthis field. The essential modifications andadditions have been implemented regardingthe legislation of the securities market andlegislation of the join stock companies. Thus,the basis of the further development of thesecurities market has been incorporated in theRepublic. Implementation of a new instrumentsprocess has been developed with in thefinancial market as corporate bonds,sustained by government and all the country’sfinancial institutions in order to attract foreigninvestments.As for dynamics of development, the year2007 is characterized by the increase of theexchange indicators. The volume of theExchange market constituted 84% (US$ 106million) of general volume of secondarysecurities market (regarding the OTCexchangevolumes, only buy and selltransactions are taken into consideration), thisappears to be a record for this indicator. Oneof the most successful auctions of the yearwas the auction of selling public propertyshares in the amount of US$ 6.8 million wherethe securities of 83 join stock companies ofdifferent economic areas have been placed.The main factor in achieving the 2007 yearrecord indicator is transactions with banksshares. The most important transactions wereexecuted through public offerings: the tenderoffer with shares of commercial banks“Mobiasbanca” to the amount of US$ 37.5million, and “Unibank” to the amount of US$21.4 million. The increased demand for banks’securities has been reflected on their marketprice.In 2007, the process of reorganization of openendfunds in the process of liquidation hasbeen finalized; nowadays they no longer existas professional participants of the financialmarket.The main reason for these modifications arethe development of a transparent and liquidsecurities market, which will encouragedomestic and foreign investors to acceleratetheir activity in the Moldovan Market.FUTURE OUTLOOKWithin the bounds of integration of TheRepublic of Moldova in the European Unionwith the purpose to implement of newinstruments for attracting investments in thecountry and markets integration, in 2007 hasbeen done a fruitful work in adopting new lawsand modifications of the existing legislation onStock Exchange Market. It has been approveda new law regarding the National Commissionof Financial Market (it’s created the Megaregulator) and it has been assigned a newmembership of the Administrative Board of thefinancial market. The code of corporategovernance has been implemented. The newlaws of audit and accounting activities havebeen initialized, as well as many normative andlegislative acts of this field. It has beenimplemented the essential modifications andadditions in the legislation of securities marketand legislation regarding join stock companies.Thus, the basis of the further development ofthe securities market is incorporated in theRepublic.It has been initialized the process ofimplementation of new instruments of financialmarket as corporate bonds, sustained bygovernment and all the financial institutions ofthe country in order to attract foreigninvestments. In present, all the open-endfounds created at the beginning of privatizationare in the process of liquidation, except 6Investment Founds, which have beenreorganized in commercial enterprise with nolicense for activity on financial market. They areexpecting the legislation regarding the holdings.Thereby, it has been adopted the basis offuture development of Moldovan financialmarket. Securities on Moldovan market stillpresents a high interest for local investors aswell as for foreign investors, that leads to theincreasing volume of securities liquidity andpositive tendencies in the market development.CONTACT INFORMATIONContact Name Mr. Serghei IstrateE-mail serghei.moldse@gmail.comWebsite www.moldse.mdPAGE 66