Euroclear looks to open up Serbian market to foreign investors with link discussions

Links has the potential to give foreign investors access to the Serbian domestic market in a more secure and standardised way.

By Jonathan Watkins

Euroclear and Serbia’s Ministry of Finance have signed a term sheet to establish the appropriate market conditions for the creation of a Euroclearable market link to attract more foreign investment. 

The move continues a recent run of links Euroclear has established with Turkey, Chile and similar initiatives across Asia and the Middle East.

The term sheet with Serbia maps out the specific requirements needed to launch a link, which will expedite international investment into the country’s bond market, providing efficient currency sovereign debt issuance. 

Euroclear said the 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.

“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,” said Sudip Chatterjee, head of global capital markets, Euroclear.