BELGRADE (Serbia), January 27 (SeeNews) – J.P. Morgan has placed Serbia on Index Watch Positive for potential inclusion in its Government Bond Index-Emerging Markets (GBI-EM), the Serbian central bank said.
The decision to include the Serbian bonds in the index will most likely be made in the second quarter of 2020, the central bank said in a statement on Friday.
The placing of Serbian bonds on Index Watch Positive is a recognition of the results the country has achieved in terms of developing its economy and financial market, as well as of the activities taken to create an attractive local investment environment, the central bank said.
"In case of a positive decision, which we undoubtedly expect by mid-year, the effects on the domestic financial market will be numerous – our investor base will expand considerably and Serbia will be eligible for the broadest group of eminent investors from all over the world," central bank governor Jorgovanka Tabakovic noted.
J.P. Morgan particularly emphasises that the activities undertaken by Serbia in the prior period in terms of adjusting its bond market to the best international practices have resulted in increased foreign investors’ demand for local securities and an evident increase in secondary market liquidity in the last two years, the central bank said.
The GBI-EM is a comprehensive emerging market debt benchmark that tracks local currency bonds issued by emerging market governments. It limits inclusion to only those countries that are readily accessible and where no impediments exist for foreign investors.