Ljubljanska borza, d. d., Ljubljana
Ljubljana Stock Exchange publishes Capital markt development strategy
Today the Ljubljana Stock Exchange publicly disclosed the Capital Market Development Strategy, which it has drawn up together with capital market participants.
The Strategy addresses the changed economic and financial conditions that have marked the country over the past two years. The crisis exposed some of the hidden weaknesses of Slovene economy, and a better performing capital market could contribute to solving them. The Strategy proposes measures and activities to boost market confidence and increase market quality, along with measures and activities to stimulate supply and demand. These measures can increase the quality and liquidity of the market, and, if applied right, make the Slovene capital market a major supporting player in the restructuring of the Slovene economy.
The areas of special national significance put forward by the Strategy include: all forms of saving for old age, improving the capital structure of Slovene companies, improving corporate governance, balancing the state’s ownership role and strengthening the international competitiveness of Slovenia's financial sector.
The Strategy has already resulted in tangible improvements. With the introduction of Xetra the Slovene market is becoming integrated into international markets, and we are also expecting the admission of first international banks to remote membership of LJSE. Xetra will facilitate foreign financial intermediaries’ easier access to our market, enhancing the market’s liquidity and improving price formation. On a parallel level, Slovenia’s top companies as well as the capital market as a whole are already being showcased at road shows across international financial centres.
3rd pillar pension system solutions were analyzed across countries and so was the proposed implementation of “P accounts” in Slovenia. Abroad P accounts have become a well established form of individual pension saving scheme that can help relieve the national 1st pillar pension budget and enable all responsible citizens to assume a part of the responsibility for their well-being in old age. In the context of the capital market and banking system these savings can provide additional funds to support the growth of the Slovene economy.
President of the Ljubljana Stock Exchange, Andrej Šketa, noted that »the Slovene economy can rebound and witness sustainable growth only through an interplay of aligned activities and integration into international economy and finance. The Slovene financial markets require special attention in this respect, as we must increase transparency and straightforwardness as well as further enforce the principles of market competitiveness. This is not an easy task, but – given the state’s support and the support of market participants – I am convinced we can manage«.
Ljubljana Stock Exchange