EBRD supports capital market development in Croatia

• The EBRD is supporting Croatia’s Ministry of Finance in developing a Strategic Framework for Capital Markets Development
• Five strategic directions have been identified
• The Strategic Framework 2025 to 2030 and Action Plan implementation are planned following public consultations

The European Bank for Reconstruction and Development (EBRD) is supporting the development of capital markets in Croatia by assisting the Ministry of Finance of the Republic of Croatia (MoF) with the market development agenda, resulting in the design of the Strategic Framework for Capital Markets Development.

As part of the project aimed at supporting the MoF in strengthening Croatia’s capital markets, a comprehensive review was conducted to assess the current state, identify key barriers, and benchmark Croatia against peer markets. Besides Croatian Financial Services Supervisory Agency (HANFA) as a partner, various other relevant stakeholders were involved in the process, including, but not limited to, the Zagreb Stock Exchange (ZSE), the Central Depository & Clearing Company (SKDD), and market representatives.

An international consultancy team, in collaboration with relevant market participants, worked together to identify, assess, and define specific strategic levers and associated initiatives in a consolidated document that will serve as the national strategic framework.

Based on these findings, five strategic directions for further capital market development were defined: regional integration and positioning Croatia as a financial hub, digitalisation, improving corporate governance, enhancing market liquidity, and developing new investment products and financing options. These strategic directions are further supported by a horizontal initiative focused on optimising the legislative framework by reducing excessive regulation. Together, these measures will contribute to a more dynamic and competitive capital market, fostering Croatia’s progress towards emerging market status.

The identified initiatives, along with supporting activities and measures to be implemented, are detailed in the Action Plan document.

The Strategic Framework for Capital Market Development 2025 to 2030 and the corresponding Action Plan were presented today in Zagreb. A public consultation process will follow.

The EBRD is a leading institutional investor in Croatia. To date, the Bank has invested more than €4.9 billion in 260 projects in the country, with nearly €140 million invested in capital markets over the last five years.