Asset Servicing Industry News | Euroclear and Serbian policymakers in talks to create a Euroclearable market link
Euroclear and the Serbian Ministry of Finance are in discussions 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 outlines the specific requirements needed to launch this link, which will accelerate international investments in the Serbian bond market, providing efficient issuance of debt. sovereign in money.
The Euroclearable link will allow foreign investors to access the Serbian domestic market in a more secure and standardized way, which will result in a lower cost of borrowing, increased liquidity and greater market stability, according to Euroclear.
Sinisa Mali, Serbian Minister of Finance, said: “The connection to the Euroclear platform will facilitate new investments in government securities issued in local currency. This will also have a positive effect on the future development of monetary and capital markets in Serbia, and will lead to a reduction in financing costs.
He adds: “In addition to facilitating new investments, this will also attract a whole new profile of investors to the Serbian market. In December 2021, a systematic new Capital Markets Law was passed, which should contribute to the creation of a more transparent and safer market.”
Sudip Chatterjee, Head of Global Capital Markets at Euroclear, comments: “We are extremely pleased to be discussing 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 improve liquidity, profitability and international investments. »