The Deputy Prime Minister of the Government of the Republic of Croatia and Minister of Finance, Marko Primorac, announced the presentation of a new Strategic Framework for the Development of the Capital Market, a document that will be crucial for increasing the competitiveness of the Croatian financial sector. According to the Minister, the Government has identified a number of opportunities that should stimulate the development of the domestic capital market, including greater citizen participation through the issuance of government bonds and treasury bills. Previous results show that more than 150,000 citizens are already investing in these instruments, achieving significant mobilization of domestic savings.
One of the key points that Minister Primorac emphasizes is the need to strengthen the financial literacy of citizens. In addition, it is necessary to activate savings that are held in deposits. According to the latest data, citizens hold more than 36 billion euros in banks. This represents a significant potential for further investment in financial instruments, not only through government bonds but also through municipal bonds, which would offer additional investment options, especially in local infrastructure projects. This would not only ensure the security of invested funds but also stimulate economic activity at the local level.
Regional cooperation as a key to the development of the market
Cooperation with Slovenia in creating a regional capital market represents another crucial step towards strengthening liquidity and the recognition of Croatia in the international investment market. At the recently held conference "Capital Markets 2024," Primorac emphasized the importance of regional integration as a strategy that could transform Croatia and Slovenia into competitive players in the global financial market. The plan includes the establishment of a joint stock index between the two countries, which would facilitate attracting a wider circle of investors and strengthening confidence in domestic financial institutions.
Alongside these efforts, the expansion of cooperation at the level of the entire region is being considered, with the potential to include other European Union member states. Similar initiatives have already been seen in the Baltic countries, where regional integration has led to the creation of a recognizable and liquid capital market that attracts the attention of global investors. The success of such projects shows that Croatia and Slovenia, through joint efforts, could achieve similar success, especially if a critical mass of shares and other securities available for trading is reached.
Potentials for further development and challenges ahead
Although previous efforts have led to an increase in market liquidity and capitalization, challenges still remain that need to be overcome to ensure long-term development. According to Ivana Gažić, the Chairwoman of the Management Board of the Zagreb Stock Exchange, it is necessary to continue increasing the number of listed companies and creating a more favorable legislative framework that would enable easier access to the market for businesses and citizens.
In addition, it is necessary to take further steps in terms of the digitalization of the capital market, allowing citizens and businesses simpler and faster access to investments. In this regard, the Ministry of Finance is already working on platforms that will allow citizens to invest in bonds and other securities through digital channels, which could significantly increase interest in such instruments, especially among the younger population.
Concluding thoughts on the future of the capital market
As Croatia increasingly focuses on establishing a competitive and liquid capital market, the strategic framework to be presented by the end of this year has the potential to bring key breakthroughs. Regional cooperation with Slovenia, strengthening financial literacy, and activating domestic savings are just some of the steps that will lay the groundwork for further development.
All these initiatives, from issuing bonds to creating a joint stock index, are aimed at making Croatia part of the global investment map and ensuring the long-term sustainability and stability of the financial market. The development of the capital market is essential for ensuring economic stability, attracting foreign investments, and creating new opportunities for the domestic economy.
Czas utworzenia: 10 października, 2024