New strategy to promote development of capital markets
The government has adopted a strategy for the development of capital markets that the Finance Ministry hopes will make Slovenia a country where organised financial markets are recognised as an investment opportunity.
The first strategy of its kind revolves around three pillars: digitalisation and greater presence of small and medium-sized enterprises (SMEs) on the capital market, expanding the scope of financial products with additional types of bonds, and the promotion of digital literacy.
"Implementation of the strategy will raise the profile of the Slovenian capital market, which can benefit companies, in particular SMEs, whose access to financing is currently tight, and households," Finance Minister Klemen Boštjančič said.
He said the measures in the strategy would facilitate economic growth and the green and digital transition, and "support the development of existing and launch of new hi-tech and innovative SMEs with high potential for fast and sustainable growth."
Greater emphasis on financial literacy is expected to attract more retail investors to the capital market. "By promoting the issue of less risky financial instruments for this segment of investors, we can create an attractive investment environment that provides a cost-effective way to generate returns on savings," he said.
The strategy will be shortly followed by implementing regulations and detailed measures. "We don't want this to remain dead ink on paper, we want it to be implemented in practice in the coming years," he said.
Slovenia made the commitment as part of its recovery and resilience plan to draw up a strategy for the development of the capital market.
"The bulk of financing sources are provided through the banking system, whereas the capital market faces problems because of its size, both in terms of liquidity and the number of financial instruments. This is why it is poorly known and undeveloped," the Finance Ministry said when it first presented the strategy.