The Government Adopted a Strategic Framework for the Development of the Capital Market

The key strategic directions for the development of the capital market include promoting international integration, digitalization, improving corporate governance in companies, enhancing liquidity, and developing new investment instruments, emphasized Finance Minister Marko Primorac.

Presenting the proposal for the strategic framework for the development of the capital market in the Republic of Croatia for 2025 – 2030 and the action plan for its implementation in 2025 and 2026, which were subsequently accepted, Primorac stated that the Government recognizes the fact that a developed capital market is an important determinant of economic growth and a crucial prerequisite for achieving development goals.

In this context, the Deputy Prime Minister and Finance Minister noted that a developed capital market enables effective capital allocation, primarily into efficient investment projects, greater liquidity, and risk diversification. It also attracts investments, fosters innovation, and contributes to the development of the financial sector as a whole and the maintenance of the country’s financial stability.

Primorac reminded that the Government has already taken significant steps to encourage market activity in the form of issuing government bonds and treasury bills in which citizens could also participate as investors.

The response has been exceptionally good so far, with currently as much as seven percent of the total public debt in the hands of citizens, along with the corresponding interest, said the Finance Minister.

The First Such Document in the Republic of Croatia

However, he noted that until now, such a comprehensive document had not been adopted in Croatia, which would systematically determine the current state and then propose certain measures for the improvement and development of the capital market.

The strategic framework thus defines and elaborates in detail five key strategic directions for the development of the capital market in Croatia – promoting international integration and positioning Croatia as a regional financial center, then digitalization of the capital market, improving corporate governance in companies, enhancing the liquidity of the capital market, and finally, developing new investment instruments and financing methods.

In this regard, as stated in the Government’s conclusion, regional integration includes achieving ’emerging market’ classification, considering options for regional integration with other markets, and introducing links with international central securities depositories.

Enhancing the liquidity of the capital market, on the other hand, implies creating and improving initiatives aimed at encouraging active trading by small and institutional investors, while the development of new investment instruments and financing methods includes support for alternative sources of financing, strengthening venture capital funds, assisting companies in going public through initial public offerings, and so on, as well as supporting additional products such as green securities, ETFs, etc.

– The proposal for the strategic framework is based on systematically strengthening the capital market through comprehensive measures and initiatives that are aligned with the best European and international practices – emphasized Primorac.