Pedro Siza Vieira, Minister of Economy, defended that the capital market is “critical” for the economy and promised tax benefits for the capitalization of companies under the Recovery and Resilience Plan (PRR).
This Tuesday, the Minister of Economy highlighted the importance of the reform of the capital market for the development of the Portuguese economy, advancing that the Recovery and Resilience Plan (PRR) foresees capitalization tax benefits of companies in the market.
“Within the scope of the PRR, whose proposal we presented to the European Union very recently, it is envisaged as one of the reforms with which the Portuguese State undertakes to carry out the reform of the capital market”, stated Pedro Siza Vieira at the opening of the online seminar on “30 years of CMVM: The future of the capital market and its regulation ”.
“E no PRR we are really committed to this reform: in the revision of the Securities Market Code, in the revision of the business investment securities investment companies regime, in the ability to increase the tax benefits to the capitalization of companies, which will nevertheless constitute a powerful incentive for more Portuguese companies finance themselves in the market ”, he added.
According to the minister, “very recently” the Ministry of Economy and the Secretary of State for Finance constituted a task force with other relevant agents in the market “to act upon” the recommendations contained in the diagnostic work done by the Organization for Economic Cooperation and Development (OECD) and the Securities Market Commission (CMVM) for the development of the capital market.
In this regard, the Secretary of State for Finance, João Nuno Mendes, who also participated in the seminar, said that the report with the conclusions of this task force should be presented “in late May or early June”.
In his speech, the Minister of Economy admitted that, currently, “the market is going through difficult times”, with “fewer companies issuing securities and quoting values in the Portuguese market” and “less appetite for Portuguese investors and savers for financial products. ”.
“It is understandable that this is“, He acknowledged, recalling that a decade ago there was“ a very large process of destruction of value and savings, regarding many problems that the Portuguese still continue to associate with the capital market ”.
“On the other hand, in the face of an increasingly reduced number of issuers, we have a complexity in the regulatory weight that it matters to simplify and that removes many small and medium-sized companies (which constitute the bulk of the Portuguese market and our fabric, our business fabric) from the possibility of accessing alternative sources of financing ”, added the minister.
Maintaining that “the capital market is important – it is even critical – for the development of the Portuguese economy”, Siza Vieira considered that “finding ways to savings of the Portuguese to be applied in the economy and in the national productive fabric ”it would be“ doing the economy an excellent favor ”.
“One of the critical factors for the growth of our productivity consists precisely in the diversification of the financing sources of our companies and, above all, in the possibility of finding financing for their own capital in the market”, he said, stressing that it is “very important to adapt market rules and empower companies ”.
As he pointed out, “annually, Portuguese savers put hundreds of millions of euros in pension funds, investment funds and life insurance products”, being “very important to find financial products that allow these Portuguese savings to be applied in the national productive fabric ”.
“Having a market that constitutes a financing tool of our economy using savings from Portuguese citizens and companies is a critical issue for our future, ”he said.
“The reform we are committed to will allow us to take steps towards the diversification of this very important problem for the financing of our economy and for the capitalization of our companies”, maintained the minister.