Ministry of Finance national capital markets strategy

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The Ministry of Finance has published its national capital markets strategy today for consultation. BTA were the consultants working for the Ministry of Finance, EBRD and EU on this project.

https://www.parkiet.com/Finanse/302149759-Rada-Ministrow-zajmie-sie-strategia-rozwoju-rynku-kapitalowego.html

The publication is in Polish – but google translate outlines what is planned.

The capital market development strategy has been included in the Council of Ministers’ legislative and program works”

As the Ministry of Finance adds, this decision will allow wide public consultations. “The implementation of the SSRC will contribute to the use of the capital market potential as an incentive for the development of the Polish economy. The goal of the strategy is to improve access to financing for Polish enterprises by reducing the average cost of raising capital in the domestic economy, “says Teresa Czerwińska, quoted in the statement.

“The strategy comprehensively diagnoses the problems of the domestic capital market, both external and internal, allowing identification of the 20 most important barriers to its development. At the same time, constructive solutions were developed in the Strategy and recommendations were proposed to overcome the identified barriers. This project is also the basis for reviewing the legal provisions relating to capital market entities, thus contributing to the reduction of the so-called inflation of regulations regarding this market “, – reads in the list of legislative works.
The detailed objectives established in the project are:

  1. Development of public and private markets – increasing the scale of raising capital in the non-governmental sphere, including by public issuers (eg listed products, structured products, specific derivatives);
  2. Increased liquidity – maximization of liquidity at lower transaction costs, by increasing the level of trading on the market, lowering indirect and direct costs and extending the offer of proposed financial instruments;
  3. Increasing the scale and improving the efficiency of intermediation in the primary and secondary market for Polish and international enterprises and in providing derivative instruments on the Polish capital market;
  4. Increasing the share of savings in the economy measured, among others, by the share of private savings in GDP, but also increasing the number of people saving in IKE and IKZE;
  5. More efficient administrative procedures – faster, more cost-effective and time-saving procedures (shorter processes for approval of prospectuses, elimination of legal restrictions on automation and increase of transparency and consistency of issued decisions).

“At the same time, the implementation of the above objectives will be guided by four horizontal principles: strong protection of individual investors, striving to increase market confidence, legal certainty and stability, and striving to increase competitiveness of the capital market through the use of new technologies” – underlined.
The work schedule shows that the project is to be adopted by the Council of Ministers in the first quarter of 2019.