The National Bank of Serbia has announced that the US investment bank and financial institution “J.P. Morgan” has announced that it is “considering the positive outlook” to include the dinar bonds of the Republic of Serbia in its developing market bond index “J.P. Morgan GBI-EM Index”.
The NBS interprets this as a recognition of Serbia for its economic and financial market development results, as well as for the creation of a favorable domestic investment environment.
Just a few years ago, this was unthinkable.
In the event of a positive decision, the effects on the domestic financial market will be numerous: the base of investors investing in our country will be further expanded, and Serbia will be open to access the widest group of eminent investors in the world.
In the report, J.P. Morgan noted an increase in foreign investors’ demand for Serbia’s securities and a rise in liquidity in the secondary market over the past two years.
Just putting Serbia on the “Index Watch Positive” is a clear signal, Serbia has fulfilled all the prerequisites to be in a reputable group of developing countries that international investors consider safe to invest.
Consideration will be given to the inclusion of RSD bonds of the Republic of Serbia in the “GBI-EM Global Diversified” index of the same bank, which is a “benchmark” index of bonds of developing countries in local currency.
This is another confirmation of the quality of Serbia’s bonds on the world market.
The approach of the Ministry of Finance is to develop the domestic capital market and to keep Serbia in the foreign market, with good financial instruments that it can offer to world investors.
Amendments to the Capital Market Law have been announced for the coming week, which will enable them to increase the base and structure of potential investors who will invest in domestic securities.
Serbia’s negotiations with the European Union recently opened “Chapter 4 – Free Movement of Capital”, which is an acknowledgment that Serbia has conditions for future integration with European markets, and that Serbia’s accession to Euroclear Bank is being negotiated until the end of this year.
All this, together with the increased credit rating granted by Serbia’s leading ratings agencies Standard and Poor’s and Fitch last year, allows one to successfully plan economic growth and carry out investments under the recently announced Serbia 2025 plan.
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