5. Financial Transparency
5.1 Market Stability
5.2 Independent Asset Valuers
5.3 Data Standards
In-Country Assessment Information

The State Cadastral Committee in cooperation with licensed professional valuers has set out a unified standard for valuation of real property according to the 2005 Law on Valuation of Real Property. Current standards, however, are not fully compliant with the International Valuation Standards. The valuation standards for taxation also differ significantly from those for lending purposes.

Property information is available but not in standardized formats. Most businesses use databases of real estate agents, companies, relevant print and electronic media, or information from friends, partners, and colleagues.


Goal – A well developed and transparent financial system that includes strong supporting institutions and highly trained and ethical professionals that contribute to effective financial intermediation and deep and broad access to capital and financial services


5.1 Market Stability


Core Question: Are market risks sufficiently transparent and diversified so that efficient capital allocation can occur? No – Weak, the global crisis brought sharp contractions and the pace of recovery remains slow.

Financial Reporting
5.1.1 What is the strength of the country’s auditing and reporting standards? Weak – 87th out of 142; Score 4.37 out of 7 ↑

Financial Services
5.1.2 Does the financial sector provide a wide variety of financial services to businesses? Weak – 95th out of 142; Score 3.76 out of 7

Source: The Global Competitiveness Report 2011-2012, World Economic Forum –

Insolvency Process
Strong – Ranking – 62nd out of 183 Trend ↓

5.1.3 What is the average time to complete bankruptcy proceedings? 1.9 years

5.1.4 What is the cost of bankruptcy proceedings
as a percentage of the estate? 4%

5.1.5 What is the recovery rate of bankruptcy
proceedings? 40.3 cents on the dollar

Source: 2012 Doing Business – Closing a Business, World Bank –

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5.2 Independent Asset Valuers


Core Question: Do trained, independent and ethical asset valuers exist for all types of assets? No – Weak, some interaction with regional professionals in Romania and Poland has occurred.

Survey Questions
SQ 17: How easy is it to find a valuer who implements International Valuation Standards (IVS)? Weak – 64 companies listed as of 2007, standard are not compliant with IVS.

Civil Society Resource: International Valuation Standards Council,

SQ 18: What is the level of training of valuers? Unknown – IRPF conducted basic training program in 2002 & 2003 with the National Association of Agents and Appraisers.

Civil Society Resource: International Real Property Foundation –

SQ 19: Are opinions offered by valuers free of influence from parties to the transaction? UnknownCivil Society Resource: International Valuation

Standards Council


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5.3 Data Standards


Core Question: Is accurate property information available electronically in formats that are consistent with international standards? No – Weak, but reforms are underway in conjunction with upgrading of State Cadastre.Survey Questions
Sales & Operating Data
SQ 20: A multiple listing service is an electronic exchange system where brokers and agents can widely share contracted real estate listings of properties that are for sale. Do multiple listing type services exist? No – Weak, although dedicated Internet sites are starting to emerge.Source:
Civil Society Resource: International Consortium of Real Estate Associations

SQ 21: Do resources exist for obtaining building income and expense estimates? No – Very Weak Civil Society

Resource: Institute of Real Estate Management

Interchange Formats

SQ 22: Do electronic data interchange formats conform to international standards (ebXML – electronic business using extensive markup language)? No – Very Weak

Civil Society Resource: Open Standards Consortium for Real Estate International

Technical Standards

SQ 23: Do building codes and office building measurement standards (ANSI/BOMA Z65.1) conform to international standards? Yes – Very Strong, National Building Code introduced after the 1988 Spitak Earthquake.

Source: Ministry of Urban Development
Civil Society Resource: Building Owners and Managers Association


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In-Country Assessment Information (as of May 2008)

Valuation Profession
FQ22: How many independent valuers exist in the market? Can small businesses obtain fair valuations for property they want to buy or sell?Currently there are approximately 60-65 independent valuation companies. There are no legal or administrative limitations or barriers for obtaining fair property valuation by independent valuers. Almost all participants believed they could obtain a fair valuation.

FQ23: What are the valuation standards and do they conform to international and regional standards? According to the Law on Valuation of Real Property the State Cadastral Committee in cooperation with licensed professional valuers should set out unified standard for valuation of real property (approved by the government in June 2006 and is in force since September 2006). Current standards are not fully compliant with International Valuation Standards.

FQ24: What valuation methods and techniques are used in the market?For lending purposes the valuation is done by independent companies taking into consideration the market price according to its liquidity. The valuation standards used by State Cadastral Committee for taxation purposes differ, sometimes significantly.Data Availability

FQ25: How available is information for commercial properties that are for sale or that have sold?Property information is generally available. Most businesses use databases of appropriate real estate agents, companies, relevant print and electronic media, friends, partners, colleagues