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Reform Support
Diagnostic of the state of development of the Bulgarian Capital Market banner

Supporting reforms to develop well-regulated, stable and competitive financial markets

Funding Programme
  • 2020

Diagnostic of the state of development of the Bulgarian Capital Market

The Commission supported the project providing valuable insights and guidance to enhance the development and effectiveness of the local capital market. It aimed to evaluate the current state of the market, identify barriers and obstacles that hinder its progress, compare it with selected capital markets in the European Union, and provide recommendations to address the identified barriers.


Bulgaria’s local capital market lags behind its regional counterparts, with its progress being closely tied to overall economic development and national characteristics. In recent years, the development of capital markets has become a key priority at both the European and national levels, as the integration of national markets is crucial for achieving a fully integrated capital market within the European Union. This project represents the first initiative by the Ministry of Finance (MOF) to develop a capital markets strategy since the launch of a development strategy led by market participants in 2016.

Support delivered 

The project has successfully delivered two key outputs: a comprehensive diagnostic report (Gap assessment) and a set of policy recommendations.

The diagnostic report served as an interim evaluation of the current condition of the capital market in Bulgaria, incorporating insights from interviews with market stakeholders and analysis conducted by the authors. It identifies crucial barriers, including low market trust, limited availability of investable assets, an unsupportive regulatory environment, and moderate financial literacy. The primary aim is to promote greater utilization of the capital markets in Bulgaria by both issuers and investors.

The recommendations report aims to promote greater utilization of capital markets in Bulgaria by issuers and investors, with three intermediate objectives: increasing the availability of investable assets, enhancing trust in capital markets, and improving cost-effectiveness and efficiency. The report offers a set of recommended actions across various areas of activity, serving as the basis for the development of the Capital Market Strategy.

Results achieved 

The project's findings, including the final diagnostic report and policy recommendations, may serve as the foundation for designing a future Capital Market Strategy for Bulgaria. This strategy will encompass both general capital market elements and address specific issues relevant to the country's context.

More about the project

You can read the final report here: