The Croatian capital market has all the prerequisites to be excellent, outstanding, liquid, and a developmental factor for the economy. However, the problem lies in the activity of citizens and small and medium-sized enterprises, education, and financial literacy. A significant boost to this development was the issuance of ‘people’s bonds’ which resulted in high citizen participation.
This was concluded at a panel discussion on the topic ‘A New Era for the Domestic Capital Market’ at the 26th Scientific and Professional Conference ‘Financial Market.’ Panelists are optimistic about the development of the capital market in Croatia, according to the statement.
– The positive effect of issuing people’s bonds is significant. Many questions have been raised, and we need that for the future of the market. However, there is one thing I did not like – the communication was that it is a safe investment and that one cannot lose. We who have funds cannot communicate that such a product is risk-free – warned Josip Glavaš, CEO of Erste Asset Management – a company for managing investment funds.
– I expect many more listed companies in the next five or ten years; there will be different models. I am optimistic, but we will need time for that – said Kristijan Buk, CEO of Allianz ZB – a company for managing mandatory and voluntary pension funds. He stated that the past year was the biggest crisis since 2008. Banks, funds, and companies have weathered this crisis much better and faster than expected. – In the last year, two out of three pension fund portfolios are in the plus. The third will soon be in the plus. The rise in interest rates will be good for us – said Buk.
Martina Dalić, CEO of Podravka, emphasized that we have had many discussions on this topic in the last 20 years. – We have all the knowledge, all the assumptions for a more active and deeper capital market. We will not be a market-centric financial system, but that is not necessary. A leading role of the state is needed – said Dalić.
She pointed out that the capital market cannot develop without smart state policy. – People’s bonds are an indicator of what happens when there is a strategy and a plan. How will small and medium-sized entrepreneurs borrow on the capital market and place their shares if the largest issuer – the state, shies away from it – said Dalić.
Darko Horvat, CEO of M+ Group, said that they have gone through all forms of financing in the last five years. – We have exceeded all expectations. We are trying to develop both ourselves and the market. Implementing strategies is a problem in Croatia – said Horvat.
Emil Tedeschi, CEO of Atlantic Group, stated that the appetite of investors for Croatia and the region has diminished. – We have two unicorns; we must not allow Infobip and Rimac to go unnoticed. They will certainly be listed, but the question is whether it will be in Zagreb. However, I think that companies in their system could be listed in Zagreb; they are a beacon of a new generation. Perhaps we are not even aware of what is happening in Croatia. We need to be creative in how to involve those who could stimulate interest in the capital market – said Tedeschi.
All panelists agreed that without education and investment in the financial literacy of citizens and small and medium-sized enterprises, the capital market in Croatia will not achieve all the potential it has.
