Romania’s Capital Market Ascends: MSCI Upgrades to Advanced Frontier Status
In a significant development for Romania’s financial landscape, MSCI, a leading global index provider, has reclassified the country’s capital market to an Advanced Frontier Market. This upgrade, announced on June 25, 2025, marks a crucial step towards achieving coveted Emerging Market status and is expected to attract increased international investor interest, bolstering liquidity and elevating Romania’s global financial profile.
Key Takeaways
- Romania’s capital market has been upgraded by MSCI to the Advanced Frontier Market category.
- This reclassification is a significant milestone towards achieving Emerging Market status.
- The new category includes Slovenia, Estonia, Lithuania, and Latvia.
- Romanian companies are projected to hold the largest share within MSCI’s Advanced Frontier Market indices.
- The decision is expected to boost international investor interest and market liquidity.
A Stepping Stone to Emerging Market Status
MSCI’s decision to promote Romania’s capital market follows its 2025 Global Market Accessibility Review. This reclassification places Romania alongside other nations like Slovenia, Estonia, Lithuania, and Latvia in the newly established Advanced Frontier Markets category. According to MSCI, this subcategory identifies Frontier Markets that exhibit market accessibility characteristics closely resembling those of Developed Markets, despite remaining classified as Frontier Markets due to size and liquidity constraints.
Recognition of Progress and Future Potential
Radu Hanga, President of the Bucharest Stock Exchange (BVB), emphasized the importance of MSCI’s recognition, highlighting Romania’s consistent efforts to improve market accessibility and financial infrastructure. He expressed confidence that Romania is well on its way to meeting the remaining criteria for Emerging Market status. Adrian Tănase, CEO of the Bucharest Stock Exchange, echoed these sentiments, stating that the decision is pivotal and will bring substantial economic benefits to Romania.
Market Accessibility and Areas for Improvement
Romania achieved high scores across MSCI’s accessibility criteria, demonstrating openness to foreign ownership, ease of capital inflows and outflows, and an efficient operational market framework. However, MSCI also identified areas requiring further development, specifically in clearing and settlement procedures and the transferability of ownership.
Romanian Presence in Global Indices
Currently, 35 Romanian companies are included in MSCI indices, featuring prominent entities such as Banca Transilvania, Hidroelectrica, OMV Petrom, and Nuclearelectrica. It is worth noting that FTSE Russell already classifies Romania as an Emerging Market, with 14 Romanian companies represented across its indices.
