Ministry Presents Capital Market Development Strategy

What are the main difficulties hindering the development of capital market in Poland? How to overcome these obstacles and make investors’ lives easier and market activity more robust? These are the questions that lawmakers asked when creating Capital Market Development Strategy. The document, the draft of which has been recently presented by the Minister of Finance Teresa Czerwińska, is to help shape the future of capital markets in Poland.

The Strategy is based on four pillars: building trust in the market, protecting individual investors, stability of legal provisions and supervision regulation, and the advantage of new technology. The solutions presented in the document will improve access to financing and decrease the costs of obtaining capital.

In the course of preparing the strategy draft, Ministry experts identified 20 problems that trouble Polish investors and slow down the development of capital market in Poland. Among those 20 barriers are low level of savings, inadequate financial education, low attractiveness of IPO, outdated technology in key market segments, excessive regulation (gold-plating) on one hand and legal loopholes on the other, insufficient incentives for market participants.

The Strategy presents such solutions as numerous tax incentives for investors, financial education strategy, stricter due diligence procedures, lower IPO costs, and implementing new technology. The government want to encourage Poles to build long-term savings and also to attract investment from Poles who moved out of the country.

Capital Market Development Strategy (draft version) was moved to the consultations phase. The lawmakers are waiting for opinion and advise from financial market institutions. The Ministry of Finance stresses the fact that the plan is being created together with market participants and is designed to meet their needs and expectations.

The Strategy was prepared in cooperation with European Bank for Reconstruction and Development and constitutes a part of Responsible Development Strategy, a long-term development plan of the Polish government.