The recent “Kapital u pokretu” conference, held at the Sava Center in Belgrade, underscored the pressing need to convert Serbia’s passive savings into active investments. This event brought together key figures from the financial sector, including bank executives, investors, and corporate leaders, to discuss strategies for invigorating the Serbian economy by mobilizing dormant capital.
Telekom Srbija’s CEO, Vladimir Lučić, was a prominent speaker at the conference. He highlighted the company’s recent success in listing its bonds on the Euronext exchange in Dublin, which attracted a remarkable $14 billion in demand from over 300 institutional investors globally. Lučić emphasized the limitations of the domestic banking market in supporting large-scale investment cycles, advocating for Serbian companies to engage more with international capital markets. He noted, “The capital market provides a significant influx of funds but also demands financial discipline.”
Lučić also recommended that major state-owned enterprises, particularly in the energy sector, should consider raising funds through the stock market instead of relying on state guarantees. He pointed out that artificial intelligence (AI) would be a critical factor in company valuations over the next five years, suggesting that firms not leveraging AI might struggle to attract serious investors.
Una Sikimić, the President of the Executive Board of ALTA Bank, stressed that Serbia has the necessary regulatory and institutional frameworks to support capital market growth. However, she noted the importance of attracting quality issuers to the market. Sikimić stated, “Long-term capital requires understanding that volatility is a short-term category, and a long-term horizon demands knowledge and continuity of thought.” She announced ALTA Bank’s commitment to supporting the market through its investment and custody departments, focusing on corporate bonds.
Her colleague, Željko Devčić, highlighted the role of banks in transforming deposits into productive capital. He acknowledged that public fear, rooted in past hyperinflation and crises, remains a barrier to investment. Devčić argued that trust must be built through stable institutions and positive investor experiences, rather than mere slogans. He identified the lack of quality domestic securities, particularly shares, and the initiation of Initial Public Offerings (IPOs) as significant challenges.
Srđan Maletić, President of Intesa Invest, provided insight into the growth of Serbia’s investment fund industry, which now manages assets exceeding €2.4 billion. Despite this growth, he noted that 80% of these assets remain in conservative money market funds. Maletić compared idle capital to an underutilized athlete, emphasizing the need for financial education to change the perception of investing as akin to gambling. His goal is for the assets under management in Serbia to reach €3 billion by next year.
Stanislava Petković, General Director of Vista Rica, observed a growing interest among Serbian citizens in alternatives to traditional savings and real estate investments. She stressed the importance of investors selecting funds that align with their risk profiles and investment horizons.
The conference highlighted a shift from a bank-centric financial system to one where capital markets play a more significant role. The discussions underscored the urgency of addressing passive savings in light of current economic challenges, such as inflation. However, the effectiveness of the proposed measures to activate these savings remains to be seen, with potential public skepticism about transitioning from passive to active investment.
Overall, the “Kapital u pokretu” conference served as a platform for financial leaders to advocate for a more dynamic and disciplined approach to capital investment in Serbia, aiming to stimulate economic growth and enhance financial literacy among citizens.
