The quotation of state enterprises on the stock exchange should be included in Latvia's long-term development strategy, said Prime Minister Evika Silina at the opening of the Baltic Capital Market Forum on Thursday.
According to her, Europe is currently facing a common problem: people have savings, but too large a portion of that money is kept in bank accounts or in products that yield very little income. These savings should work harder for Europe - for competitiveness, innovation, defense, green goals, and the rapid revolution in artificial intelligence that is transforming national economies.
The Prime Minister expressed support for the creation of a truly unified European capital market and emphasized the need for European leaders to make decisions quickly to implement it. She added that the financing opportunities currently available to European companies are still too limited.
For example, the volume of venture capital in the U.S. relative to gross domestic product (GDP) is ten times higher than in Europe. This gap hinders innovation, limits growth, and puts Europe at a disadvantage. The lag of Europe is attributed to the fragmentation of capital markets, according to Silina.
Silina also noted that about 12 billion euros are held in the bank accounts of Latvian households, which represents a significant untapped potential. A large portion of these funds should be directed towards productive investments - corporate stocks or bonds and funds that support enterprises and long-term growth.
The Prime Minister also pointed out that the corporate bond market in the Baltic countries is growing: by the end of October, bonds worth nearly 1.6 billion euros had been issued, which is almost double compared to a year ago.
Silina emphasized that Latvia still has much to do, especially in developing the stock market - the capitalization of the Latvian exchange is still low, which limits the growth of enterprises.
Silina called the partial quotation of state enterprises on the stock exchange an important step. She emphasized that this is not only about attracting money but also about improving transparency, governance, and competitiveness. It also provides people with more investment opportunities.
