Latvia’s capital market is the least developed in European Union, even neighbouring Baltic states have a thrice better performance. Significant undervaluation of the capital market has caused illiquidity of the assets. For comparative purposes, the market capitalization ratio to per cent of GDP is analysed.
In this challenging situation, mature and informed decisions have to be made. Latvian Financial and Capital Market Commission (FCMC) is preparing a plan of actions to develop market capitalization in Latvia and as a logical outcome of these actions the country will be able to improve its position on the European capital market. The 10-step programme for the development of Latvia’s capital market is already available to understand, which measures are going to be implemented by the FCMC.
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*This article has been made in cooperation with China-CEE institute and is the intellectual property of China-CEE institute