Bucharest SE 2007 Future Outlook

Bucharest Stock Exchange continued in 2006 its hard work in changing the market structure and the legislation to become a more accessible, transparent and fair market. The results were seen at the end of the year, when the market capitalization represented 25% of the GDP and increased with almost 40% compared to 2005.

We also expect that the positive evolution to continue in 2007, and hope that the liquidity of the market to place between Euro 15-18 million average daily turnover and the market capitalization to represent about 30% of GDP.

The BVB strategic development plan passed to the implementation stage, through the new BVB Code, which includes the legal framework for introduction of derivatives, short selling and margin purchases. Some of the targets for 2007 are:

Ø      Introduction of the trading platform for derivatives, by summer this year

Ø      Implementing trading operation on short sale, margin purchases and securities borrowing

Ø      Listing new instruments like government securities, warrants, ETFs, mortgage-backed securities

Ø      Listing of the major  utility companies, some of them still state-owned

Ø      Listing of the “Property Fund”, a major fund created to compensate the damages of the nationalization process

Ø      Promotion the structured products issued on BET

Ø      Playing a more active role in the region.