The American multinational bank J. P. Morgan has decided to include dinar bonds of the Republic of Serbia in its global bond index “J.P. Morgan GBI-EM index” from June 30, 2021, the National Bank of Serbia (NBS) announced. The NBS estimates that this will contribute to attracting new investors, because this decision also represents “confirmation of the liquidity of an economy”.
After that, dinar bonds should be included in the GBI-EM Global Diversified index.
It is noted that it is one of the benchmark indices of bonds issued in local currencies of developing countries and that it is most often followed by foreign international investors.
The bonds will also 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.
“When we started activities on the inclusion of Serbian dinar bonds in the JP Morgan bond index in 2015, few believed that it would really happen,” said the governor of the National Bank of Serbia, Jorgovanka Tabakovic.
J.P. According to the NBS, Morgan, in his report, especially emphasizes the progress in the field of liquidity of the dinar bond market, which is why investors have become “interested in trading in domestic securities” in recent years.
It is also stated that international investors agree that the liquidity on the market of Serbian dinar bonds has recovered and returned to the levels before the pandemic crisis.
In the report of J.P. Morgan also states that in previous years, Serbia has made significant efforts to develop benchmark issues of dinar bonds.
As explained, this contributes to the increase in the volume of individual dinar instruments and has had a positive effect on increasing liquidity in the domestic financial market.
The mentioned indices will include three benchmark issues of dinar bonds, with original maturities of 7, 10 and 12.5 years, which are due in 2026, 2028 and 2032.
On February 10, Serbia sold ten-year government bonds, and the volume of that auction amounted to 85 million euros.
They will be due on February 8, 2028, Nova Ekonomija reports.
