The Central Bank of Latvia published opening remarks by Governor Mārtiņš Kazaks at the Baltic Capital Markets Conference 2025, arguing that stronger European and Baltic capital markets are necessary to support resilience, growth and the capacity to finance future investment needs amid heightened geopolitical and technological uncertainty. Kazaks pointed to Draghi’s report estimate of close to EUR 800 billion in additional financing per year by 2030 and framed three priorities: treating public and private funding as complements rather than substitutes, achieving scale through a true single market in financial services via a fully operational Savings and Investment Union with fewer internal barriers and greater simplification and proportionality, and strengthening financial literacy to improve investor and corporate decision-making. For the Baltics, he noted progress in bonds but described capital markets as still underdeveloped, with equity markets lagging, and argued that the region should broaden financing beyond bank lending and bonds, including through equity financing and a larger non-bank financial sector; he also cited IPOs of public sector-owned entities as one way the public sector could support market development.
Central Bank of Latvia 2025-11-27
Central Bank of Latvia’s Kazaks urges a fully operational Savings and Investment Union and deeper Baltic capital markets
Governor Mārtiņš Kazaks of the Central Bank of Latvia stressed the need for stronger European and Baltic capital markets to boost resilience and growth amid geopolitical and technological uncertainty at the Baltic Capital Markets Conference 2025. He highlighted priorities like integrating public and private funding, creating a single financial services market, and improving financial literacy. Kazaks noted the Baltics' progress in bonds but emphasized the need for broader financing options, including equity financing and a larger non-bank financial sector.