Strategy for the Development of Slovenia’s Capital Market in the period 2023 – 2027 recently published
As for the Slovenian capital market, we bring you some information about the Ministry of Finance of the Republic of Slovenia's draft of the Strategy for the Development of Slovenia’s Capital Market in the period 2023 – 2027, recently published.
In Slovenia, the majority of sources of financing are provided through the banking system. The purpose of the capital market revitalization strategy is to bring the target groups closer to the operation and possibilities offered by the capital market in parallel to the banking system, as well as to enable easier and more transparent access to financial resources on this market.
The problems that Slovenian capital market is facing are mainly related to its small size, underdevelopment, and a lack of recognizability by institutional investors who do not recognize this market as suitable for their investment opportunities, and by domestic small and medium-sized enterprises (SMEs) which could obtain additional financial growth and development resources on the capital market, and last but not least, small investors who, due to their lack of knowledge of the functioning of this segment of the financial system, perceive the capital market as too risky and complicated.
The content of the Strategy is based on the analysis and results of the project of strengthening and developing the capital market in Slovenia which was completed in 2021. The project was carried out by PricewaterhouseCoopers and BTA Consulting in cooperation with the European Commission and with the active participation of the Securities Market Agency and the Ministry of Finance.
The purpose of the Strategy is to determine and present the measures that need to be implemented in order to achieve the set goals. During the preparation, special attention was paid to setting goals that are feasible and at the same time represent a step forward in the development of the Slovenian capital market. The Strategy includes various quantitative and qualitative objectives.
The first one of the qualitative objectives is the placement of the Slovenian capital market in the circle of recognizable, modern, and successful European capital markets. Then, the objective is to provide the Slovenian economy, especially SMEs, with the help of a competitive, modern, liquid, and more efficient capital market, the best possible access to appropriate equity financing in terms of accessibility, volume, maturity, and desired structure. Moreover, it is important to encourage the development of existing and new technological and innovative SMEs with a high potential for rapid and sustainable growth, on which the Slovenian economy could be based in the future. The final qualitative objective is to bring the adequately regulated Slovenian capital market closer to the population and to provide it with an attractive investment environment for professional and cost-effective enrichment of savings.
The quantitative objectives of the strategy are given in the form of key performance indicators and include the annual average value of daily turnover with all financial instruments in a given year on the Ljubljana Stock Exchange, the number of new listings per year within the standard or first listing, and the market capitalization at the end of each calendar year.
