27th December 2021, Skopje – Advancing the capital market in the Republic of North Macedonia up to the EU average by increasing the level of market capitalization, increasing the liquidity of the capital markets, changing both the structure of sources of financing companies’ projects and the structure of investment portfolios of individual investors, as well as improving the level of financial education, is one of the goals set in the Capital Market Development Strategy, which the Capital Market Development Council, chaired by the Minister of Finance, Fatmir Besimi, adopted today.
In addition to encouraging the processes for further development of the capital market, Strategy’s goal is also to support, via modern-day regulations and proactive supervision, a sustainable development of the financial system to the end of boosting the contribution to accelerated growth of GDP and protecting the users of financial services.
Capital market development is a significant economic factor impacting the key economic trends. So far, activities have been implemented in the Republic of North Macedonia geared towards advancement of the capital market primarily upon initiative by a certain market participant and for a specific area. Such activities understandably yield lesser and short-term effect, due to which the need for a comprehensive and inter-institutional approach has arisen for quite some time now. Therefore, in an inclusive process among all members in the Council, Capital Market Development Strategy has been prepared, the objective of which is to present the key areas regarding the development, the main focus thereby being to determine the possibilities to expand the offer of long-term securities and increase the demand, above all by greater participation of households and domestic and foreign institutional investors.
It means increasing the possibilities for financing companies’ projects, as well as greater offer of instruments for both the households and the domestic and the foreign institutional investors. More developed national capital market provides the companies a possibility to easier and more successfully cope with each new situation, they will not depend on the banking financing alone and will boost their international competitiveness. Moreover, offer to the households, which has the most funds available to invest, will be increased, which funds at the moment are mostly placed in deposits. Possibilities are also included for foreign investors showing interest, with the efforts being put to bring such investors on the local market.
Financial education and raising the awareness about the benefits of the instruments offered will play a crucial role. Clear and precise interpreting of information the financial markets offer will contribute to exploiting the opportunities and capital market development.
The Strategy includes all identified specific problems and offers adequate measures for their resolving, all Council members having reached consensus therefore.
“The document is well devised. A period of actively committing to implementing the proposed measures and activities will follow, and I believe they will contribute, to a large extent, to further development of the financial markets, in particular the capital market, in future”, Minister of Finance, Fatmir Besimi, pointed out at the Council’s session.
The Working Group, which has prepared the Strategy, comprised representatives from the Ministry of Finance, the Ministry of Economy, the National Bank of the Republic of North Macedonia, the Securities and Exchange Commission of the Republic of North Macedonia, the Macedonian Stock Exchange and the Central Securities Depositary.
The Capital Market Development Council monitors the developments on the capital market and proposes measures to ensure its continuous growth and development. It comprises the Minister of Finance, Fatmir Besimi, as its chairman, while its members are the Governor of the National Bank, Anita Angelovska-Bezhoska, Minister of Economy, Kreshnik Bekteshi, President of the Securities and Exchange Commission, Nora Aliti, President of the Council of Experts of the Insurance Supervision Agency, Krste Shajnoski, CEO of the Macedonian Stock Exchange AD Skopje, Ivan Shteriev, President of the Council of Experts of the Agency for Supervision of Fully Funded Pension Insurance, Maksud Ali, CEO of the Central Securities Depositary, Darinka Damjanovic, as well as representatives from the Macedonian Banking Association – Skopje, investment fund management companies, pension companies and representative of the large companies proposed by the Chamber of Commerce of North Macedonia, the Chamber of Commerce of North-West Macedonia and the Macedonian Chambers of Commerce.