Law on Capital Market to be amended – More efficient investments in domestic securities

(Illustration) Serbian Finance Minister said that the amendments to the Law on Capital Market would enable the base and the structure of potential investors in domestic securities to increase.

Explaining the amendments at the National Assembly of Serbia, Mali said that they would result in harmonization of the Law on Capital Market with the Law on Public Debt and that foreign investors and funds would be able to invest in domestic securities and the Serbian capital market in a quick and efficient way.

He reminded that Serbia had returned to the international capital market the previous year with two very successful issues of Euro bonds, at all-time low interest rates.

– In November, we issued EUR 550 million in bonds with a yield of 1.25% and before that, in June, we issued 10-year bonds in the amount of EUR 1 billion with a yield of 1.619% and a six times larger demand – Mali said, as reported on the government's website.

According to him, an efficient capital market and trust of the investment public are important requirements for a further economic development of the country.

Mali also reminded that Serbia had opened Chapter 4 not too long ago, pertaining to the free flow of capital, and added that the country was thereby acknowledged as meeting the requirements for connecting with EU markets after it joins the Union.

The minister announced that 20-year Euro government bonds would be issued the next day, the first such issue, as Euro denominated bonds had previously only been issued for periods of 15 years and below.

Mali added that Serbian bonds had been included on the list for potential inclusion in the JP Morgan Emerging Market Bond Index.

Loans at international banks

The agenda also includes the Draft Law on Confirming the Loan Agreement between the Republic of Serbia and the International Bank for Reconstruction and Development, which aims to increase the productivity and strengthen the market ties of small and medium agricultural and food producers.

Other items to be discussed are the Draft Law on Confirming the Loan Agreement between the Republic of Serbia and the International Bank for Reconstruction and Development for Improving the Land Registry Administration and the Draft Law on Confirming the Loan Agreement between the Republic of Serbia and T.C. ZIRAAT BANKASI A.Ş. and DENIZBANK A.Ş, about the cooperation in the field of infrastructure projects.

Also on the agenda are the Draft Law on Confirming the Guarantee Agreement between the Republic of Serbia and the European Bank for Reconstruction and Development (procurement of vehicles for Srbija Voz) and the Draft Law on Confirming the LD 2009 Loan Agreement (2019) between the Council of Europe Development Bank and the Republic of Serbia for the project loan for the construction of the new University Children's Clinic, better known as Tirsova 2, in Belgrade.

Ministarstvo finansija Republike Srbije

Narodna skupština Republike Srbije

T.C. Ziraat Bankası A.S. Ankara

DenizBank Istanbul

Finance Minister

National Assembly of Serbia

ZIRAAT BANKASI AS

DENIZBANK AS

Siniša Mali

Law on Capital Market

Law on Public Debt

foreign investors

securities

capital market

JP Morgan Emerging Market Bond Index

Draft Law on Confirming the Loan Agreement between the Republic of Serbia and the International Bank for Reconstruction and Development

Draft Law on Confirming the Loan Agreement between the Republic of Serbia and the International Bank for Reconstruction and Development for Improving the Land Registry Administration

Draft Law on Confirming the Loan Agreement between the Republic of Serbia and T C ZIRAAT BANKASI A S and DENIZBANK A S

Draft Law on Confirming the Guarantee Agreement between the Republic of Serbia and the European Bank for Reconstruction and Development

Draft Law on Confirming the LD 2009 Loan Agreement 2019 between the Council of Europe Development Bank and the Republic of Serbia

Tirsova 2

University Children s Clinic