Capital for the development of SMEs should come from several sources and the London Stock Exchange will have an important role in that regard, it was heard at a conference, "Capital Markets Day" organised by the Deloitte audit and consulting company and the London Stock Exchange Group in Zagreb on Tuesday.

Croatian Economy, Entrepreneurship and Crafts Ministry State-Secretary Mario Antonic said that with regard to economic growth and its structure, the situation in Croatia is changing for the better however, financing SMEs continues to be based mostly on loans.

He assessed that debt capital is not sufficient for a quality development of the economy overall and that ownership and equity capital is necessary in particular, adding that Croatia is becoming more aware of that.

Antonic considers that the participation of executives from the London Stock Exchange attending the conference is a sign that Croatia is an interesting market. He said that with the establishment of an innovation system in Croatia, in less than six months and in cooperation with more than 200 eminent business people, an investment potential of almost HRK 6 billion was generated.

“That potential needs to be covered somehow and innovative ideas certainly do not wait for years to be realised. It is necessary to react quickly and efficiently to those activities,” Antonic said and added that it was necessary to find a model of financing from various directions including those that can be achieved through cooperation between the Zagreb and London stock exchanges.

Axel Kalinowski, Head of Central and Southern Europe at London Stock Exchange, underscored that the London exchange has existed for more than 200 years and that about 2,100 companies are listed on the exchange from various sectors, sizes and degrees of development and they come from around the globe. The exchange provides companies with services helping them in expansion, achieving growth and development, attracting capital for investments in new business and also enables them to be visible and credible, Kalinowski said.

He underlined cooperation in Croatia with the Zagrebacka Banka, while other companies in the region they work with are the Nova Ljubljanska Banka (NLB) which has also been successfully listed on the London exchange and attracted a significant amount of capital.

UK Ambassador to Croatia Andrew Dalgleish underscores that Britain is currently faced with Brexit, which is a reality that needs to be talked about and that its outcomes are still uncertain.

However, despite Brexit, London continues to be a leading financial hub of the world, Dalgleish said.