Croatian Government adopts a new strategic framework for a safer and more liquid capital market
At its session yesterday, the Government of the Republic of Croatia adopted the Strategic Framework for Capital Market Development 2025 - 2030 and the corresponding Action Plan for 2025 - 2026. These documents lay the groundwork for a safer, more liquid and competitive capital market in Croatia.
Hanfa actively participated in their preparation with the aim of improving the regulatory framework and creating a more stimulating environment for investors and issuers.
The strategic framework sets out five key strategic directions:
- Regional integration – strengthening cooperation with regional markets to broaden the investor and issuer base;
- Digitalisation – using modern digital tools to make markets more efficient and transparent;
- Improving corporate governance – raising standards of governance in companies to enhance investor confidence;
- Boosting market liquidity – encouraging retail investor participation and ensuring market stability;
- Creating new investment products – deploying innovative financial products tailored to market needs.
Hanfa has already taken the first steps in implementing the objectives of the Strategic Framework, including boosting capital market liquidity. In accordance with the Action Plan, which identified the need to explore regulatory options for increasing liquidity on the Zagreb Stock Exchange, on 18 March Hanfa launched a public consultation and published a discussion paper on the application of the accepted market practices (MAR AMP) on the Zagreb Stock Exchange. The public consultation will enable gathering information on the need to apply the currently unused regulatory exemptions provided for in Regulation (EU) No 596/2014 on market abuse (MAR). This initiative is part of the actions foreseen under Measure 4 - Improving the liquidity of capital markets (4.5.3 Consultations for the introduction of the AMP).
In addition, Hanfa is actively working on further proposals for regulatory relief, which is also one of the objectives of the Action Plan – the horizontal objective relating to the identification of additional administrative obligations on top of the minimum requirements set in the EU (the so-called gold plating). A consultation document for the industry is currently being prepared regarding a potential revision of the laws governing alternative investment funds and UCITS. The purpose of the consultation is to identify elements of gold-plating and to encourage the development of new investment instruments and alternative sources of financing, including the strengthening of venture capital funds.
Regulatory relief is one of the priorities of the Strategic Framework and is also one of the five key horizontal factors for the European Union's competitiveness, as stated in the European Commission's Communication "An EU Compass to regain competitiveness and secure sustainable prosperity”. The EU aims to reduce the administrative burden on businesses by at least 25% and on small and medium-sized enterprises (SMEs) by at least 35%.
Hanfa will continue implementing measures from the Strategic Framework in cooperation with the Ministry of Finance and other stakeholders, with an emphasis on modernizing the market, encouraging investments and strengthening the competitiveness of the Croatian financial sector.
