The Serbian Ministry of Finance and the Euroclear Clearing Organization have signed a Memorandum of Understanding, which will create the market conditions for more efficient issuance of denominated government securities, the ministry announced.
Serbia’s intention is to allow its bonds to be traded through the Euroclear platform, which will make it easier for foreign investors to have access to the government securities market.
This allows them to access the domestic market in a more secure and standardized way, which will result in increased capital, higher trading volume and lower secondary market yields, the statement said, adding that this would encourage further development of the capital market, including the possibility to further increase its credit rating and to be included in various global bond indices.
“After huge success in the international market and significant activities aimed at further developing the local capital market in 2019, we are pleased to formalize our cooperation with the Euroclear Group, which is an exciting start to 2020. This partnership is an important part of our overall strategy to reduce borrowing costs and increase demand for sovereign bonds, grow and diversify the investor base, improve the preconditions necessary for further development of the capital market, and ensure an investment rating as soon as possible”, Finance Minister Sinisa Mali said.
The head of the global capital market in Euroclear, Sudip Chatterjee, said that the organization would support a long-term strategy for the development of the Serbian capital market by increasing liquidity, diversifying the investor base and strengthening the dinar government bond market.
The Euroclear Group settled approximately 791 trillion euros in securities transactions in 2018, representing 230 million domestic and foreign transactions, Danas writes.
