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Home/News/We are working on developing a strategy on capital market development in Serbia

We are working on developing a strategy on capital market development in Serbia

Finance Minister Sinisa Mali said that a strategy was being developed to develop the capital market, with the support of international institutions, whose draft is due to be adopted by June this year.
Mali spoke at a roundtable on capital market development in Serbia, which included international partners from the World Bank, the European Bank for Reconstruction and Development (EBRD), the United States Agency for International Development (USAID) and the United Nations Development Program (UNDP).
He emphasized that Serbia’s goal is to be even better, to reach seven percent growth, and added that systemic laws aimed at improving the capital market were passed, the Ministry of Finance said.
“The capital market alone should give us the opportunity for companies, perhaps even the state, to have more sources of financing, more opportunities, to keep our interest rate or yield as low as possible, pay as little as possible, and take as long as possible. We will do it, how we will be even better, it depends on all of us, the will exists”, said Mali.
The Minister stated that the Serbian capital market is growing and that investor confidence in Serbian finances is increasing. He recalled that Serbia returned to the international capital market last year.
“Since 2013, when the bond was last issued, we have not been in the capital market. We have now managed to reach a yield of 1.25 percent. In 2013, when we did the same, the yield was over seven percent”, he said.
Mali pointed out that it is significant that the number of investors in domestic securities is constantly increasing, that demand is higher than supply.
“It was very important for us that we signed an agreement with Euroclear Bank last week. Investors said it would be good to be part of that system as it will help a lot in terms of speed, transparency, and we expect a contract with them, which is very important”, the minister said.
He estimated that Serbian bonds received another confirmation of their value, as they were listed for potential inclusion in JP Morgan’s index of sovereign bonds of developing countries.
“Our main goal is for the domestic economy to grow. It cannot grow at the rate of five or six and seven percent unless we have a stable and developed capital market”, Mali said.
Talking about investments in Serbia in 2019 that amounted to 3.8 billion euros, which is more than all the Western Balkan countries together, Mali pointed out that he expects Serbia to be a record holder again this year, which confirms that the country has become attractive and good for finance and investment, according to a statement from the Ministry of Finance, N1 reports.