Latvia’s capital market attracted new capital worth EUR 505.4 million, as reported by the chair of the Finance and Capital Market Commission (FKTK) Santa Purgaile during the Latvian Capital Forum.
She mentioned that last year Latvia’s capital market received 12 newcomers. The number of activities with securities reached 68 989.
Purgaile espeically mentioned the growing interest of Latvian residents for the capital market. As an example she mentioned how fuel retailer Virši-A attracted 4 732 new shareholders from Latvia.
Purgaile said – development of the capital market is one of FKTK’s priorities. This is why this year a ten-step programme was developed for the development of the market.
She also reported that one of the directions of this programme is promotion of good management in enterprises that attract financing from the capital market. Last year FKTK organised a cycle of discussions together with partners to address different issues of corporate management to help promote better awareness of corporate management. The commission also established the Corporate Management Prize.
Purgaile stressed that last year the commission reviewed and reduced the burden of regulations and employed a «consult first» principle when monitoring activities. This year FKTK plans to put emphasis on equalising regulations that govern the Baltic market, because Latvian, Lithuanian and Estonian markets are usually defined as a unified market even though regulations differ across the Baltic States.
The head of FKTK admitted that there are still problems with state-funded pension system’s investments on the capital market. This is why the commission plans to work on this issue this year.
Purgaile also said the entry of state companies to the capital market would mean a major benefit for the development of the market. To assist with this process, FKTK plans to form a sandbox for securities. Using this, state and municipal capital companies will be able to use the opportunity to enter the capital market. FKTK will also continue working on promoting an understanding of the benefits that come from the entry of state capital companies to the capital markets.
The commission’s leader also mentioned last year a lot of effort was put on tax regulations to ensure the environment and rules are attractive to investors and to promote investments in businesses.
This year one of FKTK’s main objectives include the introduction of a principle of passive investment funds. «For this goal, to make major investors invest passively, we need to include the Baltic capital market to global market indexes. This will be our objective this year,» she said.
Half a billion euros attracted to Latvia’s capital market in 2021
