Euroclear and Serbia’s Ministry of Finance are in talks to establish the appropriate market conditions for the creation of a Euroclearable market link.
The Serbian Ministry of Finance and the Belgium-based international central securities depository, have signed a term sheet that maps out the specific requirements needed to launch this link, which will expedite international investment into the Serbian bond market, providing efficient currency sovereign debt issuance.
The Euroclearable link will allow foreign investors to access the Serbian domestic market in a more secure and standardised way, resulting in a lower cost of borrowing, increased liquidity and greater market stability, says Euroclear.
Sinisa Mali, Serbia’s Minister of Finance, says: "Connecting to the Euroclear platform will facilitate new investment in government securities issued in local currency. It will also have a positive effect on the further development of money and capital markets in Serbia, and will lead to a reduction in financing costs.”
He adds: “On top of facilitating new investments, it will also attract a completely new profile of investors to the Serbian market. In December 2021, a new, systematic law on the capital markets was adopted, which should contribute to the creation of a more transparent and secure market."
Sudip Chatterjee, head of global capital markets, Euroclear comments: "We are extremely pleased to move into this next phase with the Serbian Ministry of Finance in our journey to make the market Euroclearable. By working together to bring resilience and international standards to the Serbian capital market, we will be able to deliver improved liquidity, cost efficiencies and international investment."
