1 / 7

Enhancing Corporate Governance Through Institutional Investors in Croatia

Explore how institutional investors play a key role in improving corporate governance in Croatia, impacting the capital market, pension reform, investment limits, and the emergence of new investors. Learn about the promotion of corporate governance standards and the benefits for the corporate sector.

eparrish
Download Presentation

Enhancing Corporate Governance Through Institutional Investors in Croatia

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Institutional Investors as Agents of Improved Corporate Governance Vladimir Puskaric Assistant Director Agency for Supervision of Pension Funds and Insurances, Croatia

  2. Contents • Capital market today • Pension reform • Investment limits • Impact on Corporates SEE Corporate Governance Roundtable

  3. Croatian Capital Market • Few shares on official market • Small trading volume • highly concentrated • Lack of demand & supply of securities • Lack of institutional investors SEE Corporate Governance Roundtable

  4. New investors emerging • Private pension funds • Compulsory (for people under 40) • Start on January 1, 2002 • Funds being established right now • Approx. 900,000 members • Contributions USD mil 300 p.a. SEE Corporate Governance Roundtable

  5. Investment limits • At least 50% in Government and municipal securities • 30% in Croatian corporate papers: • Fixed income • Equity • 15% in OECD securities: • Sovereign debt • Corporate debt • Equity SEE Corporate Governance Roundtable

  6. Impact on Corporate sector • Fresh capital approx. USD mil. 90 p.a. • Constant demand for securities • Start of primary market • Stop dependence on bank financing • Boost for secondary trading • Support for future IPOs of public utilities SEE Corporate Governance Roundtable

  7. Promotion of Corporate Governance • Eligible corporate securities must: • be listed on Exchange • meet additional Agency criteria • Additional criteria should include Corporate Governance standards for corporate investments by pension funds. SEE Corporate Governance Roundtable

More Related