New Chișinău Stock Exchange: A boost for Moldova?
Moldova's capital market has potential, but it needs strong institutions and clear, simple rules to thrive.
For citizens, financial education and smart savings are also key to long-term economic security, according to Horia Gustă, President of Romania's Association of Fund Administrators (AAF).
Simple rules crucial for capital market growth
In an interview with the state broadcaster, Horia Gustă described Moldova's market as nascent but with high growth potential, if the necessary foundations are built. He warned, however, that this infrastructure cannot be developed solely from the top down.
"The capital market is built on a very important pillar—public trust. It works primarily with money from the public, particularly retail investors," explained Mr Gustă, President of Romania's AAF.
Gustă argues that the development of a strong capital market must begin with investors and then continue with institutional players. He also stressed that well-defined regulations are essential to prevent blockages and dysfunctions within the market.
"The infrastructure that needs to be built starts with people, with investors who must bring the money. It continues with brokers, with investment funds, and with a supervisory authority, supported by a clear and simple legal framework. (...) Because if the rules aren't known from the beginning, things can turn out very badly. Things work well when there are simple and clear rules; I can confirm this from Romania's experience," Horia Gustă stated.
Financial education and the need for long-term savings
In a society where dependence on the state remains high, the Romanian expert advocates for financial planning. He offered Romania as an example, where the concept of "smart saving" has been promoted, which could also educate the population in Moldova and accelerate the adoption of modern financial strategies.
"When it comes to investments and capital markets, we start with a few very simple things. You need to have a life-long objective. The most long-term objective is to retire. So, we need to save. In Romania, we have tried to talk a lot about the idea of smart saving: each person should set aside a sum of money they can afford each month," Horia Gustă explained.
He cited a Bucharest Stock Exchange study showing the positive effects of consistent savings: "It revealed what it means to set aside 100 RON each month for 18 years. The returns are quite impressive."
Private pensions: A model that could be adopted in Moldova
Gustă highlighted that Romania's example regarding its pension system could inspire similar reforms in Moldova.
"This is how the private pension sector developed in Romania—Pillar II, Pillar III. The state also provided some benefits for Pillar III. This means the state is starting to take responsibility off its shoulders for state pensions and, in a way, transfer it to the public," the President of Romania's AAF pointed out, in the context of the public pension systems' viability crisis.
At the same time, facing the widespread trend in Moldova of investing exclusively in real estate, Gustă warned that a lack of diversification can be risky.
"The most fundamental concepts of a capital market dictate that investments must be diversified. We shouldn't keep all our wealth exclusively in the real estate market. It is a type of investment that may or may not deliver strong returns. It doesn't have good liquidity, and if the market were to drop sharply tomorrow, the public's financial resources could suffer," the expert from across the Prut explained.
The capital market: A modern alternative for investments
Promoting the advantages of stock market investments, the President of Romania's AAF emphasized the simplicity of trading on a regulated market.
According to Gustă, highly developed capital markets also offer investment solutions in real estate, specifically in companies that do this.
"Essentially, you can sell your stake on the stock exchange and receive the funds in two days. (...) You no longer have to deal with other authorities, like a public notary, land registry, or tax certificates. The process is much simpler on the stock market. We will reach this point in a few years, but it's a good starting point for Moldova as well," Horia Gustă anticipated.
The same source reiterated that investment funds are a safe path for everyone and that the capital market in Moldova must be built with all involved actors.
"You can gain exposure to the stock exchange directly by buying listed shares or through investment funds, which are accessible to all. If individuals decide to invest, they might not know which shares to choose. And so, the channel to reach the stock market is through investment fund administrators, who make this selection of shares, divide the portfolio, and diversify it. (...) So, it needs to start and function. You need to have all the necessary actors for it to function. We tell investors that funds are for everyone because you can enter and exit investment funds at any time," the President of Romania's AAF concluded.
The memorandum to create the Chișinău Stock Exchange was signed on Monday, September 15, as part of Moldova Business Week 2025. Among the shareholders of the new Chișinău Stock Exchange, which will become operational in the summer of 2026, are the Bucharest Stock Exchange and several companies from Moldova, including commercial banks. The new stock exchange will operate as a joint-stock company and will aim to expand access to capital, attract investments, and bring Moldova closer to the European capital market.
Translation by Iurie Tataru
