Skopje, 17th October 2012 (MIA) – Under the New reformatory measures referring to the enterprise sector, the Government will propel the Stock Market, through which the companies will be able to provide funds for financing. Under the decision adopted yesterday, listing of joint stock companies on the Stock Marker and reduction of costs for initial public offer are mandatory.
Vice Prime Minister and Minister of Finance, Zoran Stavreski, at today’s press conference, announcing the Government’s decision, said that it is a matter of micro-economic reforms envisaging amendment to the Securities Law, which will stipulate mandatory listing of joint stock companies that fulfill certain criteria within 5-year deadline.
Situation in which, most of the necessary funds the enterprises provide from the banks and the fact that out of 539 companies in Macedonia, only 34 are listed on the Stock Market, as well as the fact that the sales was reduced by half this year are unfavourable circumstances, due to which the Government is dissatisfied. Therefore, we want to undertake measures that will change this situation, Minister Stavreski said, adding that this measure is coupled by the successful application of similar measure from 2002, when the number of listed companies increased from 2 to 98 and that the positive experience thereof show that such decisions should encourage the companies to appear on the Stock Market as source of financing.
According to Stavreski, the goal is not for each joint stock company to appear on the Stock Market but rather for the quality companies to be listed on the Stock Market through the determined criteria. Stipulated criteria will include the number of shareholders, the capital and the financial indicators of the company.
He stressed that this is good reformatory measure which will provide the companies, appearing on the Stock Market, alternative manner of financing as regards the banks and will reduce their borrowing, thus decreasing the costs of bank credits as well.
When, the banks, at present, are mainly in monopoly position in terms of the financing, crediting requirements surely depend exclusively on their will. However, when the companies will be more listed on the Stock Market and when they will be given the possibility to do that through the Stock Market, taking into account that they are already present on the Stock Market, the banks will assess them as more transparent with lower risk, and given the small indebtedness itself, they will be able, at the same time, in addition to the stock market capital, to also obtain bank capital with lower costs, Minister of Finance pointed out, according to whom, this measure should be applied in these circumstances when the bank capital becomes less available due to the general situation in Europe and the crisis, as well the need for the bank to be more careful when extending credits, and it will also contribute to propelling the Stock Market.
As for the costs, he underlined that they will be reduced to Denar 5,000 at all parties included in the process, i.e. the Securities and Exchange Commission, the Central Depositary and the Stock Market, i.e. they will amount to total of Denar 15,000 from the initial public offer, instead of the so-far amount, which was determined from the offer in percentage terms. Minister Stavreski expects for the new measure to increase the number of companies listed on the Stock Market by two to three times.