The inclusion of dinar bonds of Serbia in the JP Morgan index will significantly increase the country’s attractiveness as an investment destination, the National Bank of Serbia (NBS) estimated.
One of the leading financial institutions in the world, J.P. Morgan, today announced the decision to include dinar bonds of the Republic of Serbia in the renowned index of bonds J.P. Morgan GBI-EM.
According to the NBS, the index will include three issues of dinar bonds, with maturities of seven, ten and 12.5 years, maturing in 2026, 2028 and 2032.
“This decision represents the achievement of the goal that Serbia has been striving for and for which it has strongly advocated since 2015 and another confirmation of the results achieved in the field of domestic economy development, financial market improvement, and especially dinar stability, as a support and anchor of general macroeconomic stability,” stated the NBS.
Serbian dinar bonds will be included in the GBI-EM Global Diversified index, which for international investors is one of the most frequently monitored, ie benchmark indices of bonds issued in local currencies of developing countries.
Also, these bonds will be included in the GBI-Aggregate (GBI-AGG) and GBI-AGG Diversified Indices, which include government bonds in the domestic currency of both developed and developing countries.
A statement from the central bank states that J.P. In his report, Morgan especially pointed out the progress in the field of liquidity of the dinar bond market, “which indicates how much investors have become interested in trading in domestic securities in recent years.”
It was also pointed out that, although the growth of uncertainty in the markets in the previous year, caused by the corona virus pandemic, negatively affected liquidity in the financial markets of developing countries, international investors agreed that liquidity in the Serbian dinar bond market recovered and returned to pre-crisis levels.
“Now, we rightly expect the continuation of a significant inflow of investments into our country, which will give a direct impetus to faster economic growth,” said NBS Governor Jorgovanka Tabakovic.
She added that today’s announcement by J.P. Morgan is a strong signal to international investors that Serbia has reached the level of reputable developing countries, which will have multiple positive effects on the domestic financial market and provide even more favorable financing conditions for the state and domestic companies, N1 reports.
