Serbia's Finance Ministry signs MoU with Euroclear

NEWS 12.02.202013:31
TANJUG/ RADE PRELIC

Serbia's Finance ministry signed a Memorandum of Understanding (MoU) with the with securities transactions settlement bank Euroclear on Wednesday which would enable more efficient emission of state securities denominated in Serbian Dinars, the Beta news agency, citing the Ministry's statement.

 The statement quoted Finance Minister Sinisa Mali as saying that the „partnership is an important piece in our overall strategy to drive down the cost and increase demand for our sovereign debt, grow and diversify the international investor base, improve preconditions necessary for further capital market development in Serbia, and at thus secure an investment-grade rating soon.“

Euroclear head of Global capital market Sudip Chatterjee said the company’s aim was „to support the long term objective of Serbia’s market of increasing liquidity, diversifying the international investor base and strengthening the local sovereign debt market.“    

The company added that achieving Euroclearability would help to facilitate access of foreign investors into the domestic market in a more secure and standardised way which would result in an increase in capital, higher trading volumes and lower yields in secondary markets.

That, in turn, can drive further capital market efficiencies, including a possible credit rating upgrade and inclusion in various bond indices.