Takeaways: The Baltic Capital Markets Conference

This year, we had the great opportunity to partner with the organizers of the Baltic Capital Markets Conference (BCMC) to support the event and, in return, offer our members a discounted attendance rate. This collaboration is only the beginning of the benefits we plan to provide to members of the Association, so if you are not yet a member, we warmly encourage you to join.

It was my first time attending BCMC and also the first time Baltrea participated as an association. Baltrea is only about a year old, and for various reasons I had not attended the conference before. The experience proved to be extremely valuable. The event was very well organized and included excellent speakers who covered a wide range of topics presented in several engaging formats.

Key Takeaways: Education and Market Development

One of my main observations from the conference is the significant need for increased education within the Baltic financial markets. This topic is closely connected to one of Baltrea’s central objectives.

1. Household Cash Holdings and Financial Literacy

A large share of household savings in the Baltics is kept in bank accounts. These deposits usually earn interest rates that are lower than inflation. As a result, the real value of these savings decreases over time, and the money does not contribute to economic development. This situation reflects the wider challenge of insufficient financial literacy, which often prevents individuals from making informed decisions about investments and capital allocation.

2. Limited Investment Opportunities and the Potential for Listings

While interest among investors continues to grow, the equity market in the region still has considerable potential for further development. One possible way to support this growth is the partial listing of government-owned companies. This idea has been discussed for some time, and many hope to see concrete progress in the near future. Such steps could create more investment opportunities and increase market depth.

3. Entrepreneurial Risk Aversion of Corporate Debt

Another challenge relates to financial literacy among entrepreneurs, combined with a high level of risk aversion. The Baltic bond market is very active at the moment, yet a significant number of companies still prefer not to issue corporate bonds and many avoid taking on any debt at all. Many business owners choose to grow their companies only through internal resources or by reinvesting profits. Although this approach can work, it is also important to recognize that responsible use of debt can accelerate growth, increase return on equity, and provide tax efficiencies.

Highlights From the Issuers Stage

For me, one of the most inspiring parts of the conference was the Issuers Stage. Companies such as ESTO, Virši, Storent, and others presented their plans and shared their experiences. Some introduced their current debt offerings, others described their journey into the capital markets, and several outlined ambitious growth strategies. Listening to these stories and engaging in discussions with the management teams of these dynamic Baltic companies was truly motivating.

Looking Ahead

In conclusion, BCMC was a highly valuable event and I am already looking forward to next year’s conference. I hope that we can continue strengthening our cooperation with the organizers and that even more of our members will join us next time. The insights, connections, and inspiration from this year’s conference demonstrate how important such gatherings are for the development of capital markets in the Baltic region.