Representatives of seven Central European stock exchanges and the European Bank for Reconstruction and Development have signed a Memorandum of Understanding in Bratislava. The initiative aims to strengthen the regional capital markets, which are key to supporting economic growth and innovation. The cooperation includes efforts to develop primary markets, ensure operational integration of market infrastructure, promote long-term savings, develop products for retail investors, and implement modern technologies. The Memorandum of Understanding creates new investment opportunities and fosters innovation in Central Europe.
The Memorandum of Understanding signed in Bratislava on 13 November 2024 is an important step towards the operational integration and development of capital markets in the region. Representatives of the stock exchanges in Bratislava, Budapest, Bucharest, Sofia, Ljubljana, Warsaw, and Zagreb, with the support of the European Bank for Reconstruction and Development (EBRD), have decided to improve their cooperation and take steps to strengthen the international position of local capital markets.
“The Memorandum of Understanding lays the foundation for closer regional cooperation to further strengthen our region’s capital markets. The streamlining of cross-border processes will allow for a more efficient flow of capital, which can make the CEE capital markets more attractive. We believe that these efforts will make the markets much more attractive to regional retail investors and global institutional investors,” said Tomasz Bardziłowski, President of the Management Board of the Warsaw Stock Exchange.
The Memorandum of Understanding sets out priority areas for development which are fundamental to economic stability and growth in the region. One of the key objectives is the development of primary markets to facilitate access to capital for Central European companies, particularly in the early stages of business development and expansion. The development of this market segment is important for small and medium-sized companies which often have limited opportunities to raise capital from other sources.
Another important objective is the operational integration of capital market infrastructure in the region. Streamlining cross-border processes and better connecting exchanges will create a more integrated and user-friendly environment for investors and issuers.
Another key priority is to activate retail investors by promoting long-term investing, improving market liquidity, and reducing barriers to investment on regional exchanges.
The signatories of the Memorandum of Understanding emphasise that regional cooperation not only allows to address common challenges more effectively but also enhances the international competitiveness of the entire region. By pooling resources and experience, Central Europe can become an attractive location for capital investment and innovation financing.
Efficient capital markets provide key support to SMEs which play an important role in driving economic growth in the region. Businesses, especially in the high-tech and service industries, require flexible sources of capital to meet market challenges and accelerate growth. The Memorandum of Understanding will certainly contribute to their dynamic development.
The European Bank for Reconstruction and Development, one of the key partners in the Memorandum of Understanding, has pledged its full support to regional initiatives building strong and sustainable capital markets. The EBRD, which has been actively involved in project financing and supporting economic development in Central Europe for years, sees this initiative as an opportunity to further strengthen local economies and investment systems.
The Memorandum of Understanding reflects the growing commitment of Central European exchanges to the development and integration of capital markets, which are of key importance to the region’s economy. Supported by the EBRD, the initiative has the potential to bring significant benefits not only to companies but also to retail investors and households. An integrated and dynamic Central European capital market will become an attractive investment platform and an important stimulus for the future growth and economic stability of the entire region.
