- By country
- By industry
- By topic
- Top 100
BELGRADE (Serbia), June 24 (SeeNews) - Serbia may skip the issue of Eurobonds this year, given the relatively large cash buffer, budget surplus and less favourable developments on global markets, Erste Group said on Tuesday.
Part of the refinancing of Serbia will go through local currency auctions, as the debt agency has increasingly focused on mitigating foreign exchange risk in the last few years, the Austria-based banking group said in an e-mailed statement.
The 2018 budget plan envisages Eurobond issuance, as the $1 billion (855 million euro) bond from 2013 matures in December, but it could be skipped, because the country's cash buffer is relatively large, Erste said.
On the demand side, foreign investor interest is expected to remain strong, as lower, but still attractive yields on domestic and international debt paper, accompanied by stable inflation, more favourable fiscal performance and positive tones from rating agencies are supportive for overall demand in the mid-run, the bank noted.
"As for local banks, we expect their usual dynamics on the local bond market," Erste said.
The yield of dinar-denominated bonds maturing in 2023 is expected to move around 4% during the year, with upside pressure coming from benchmark yield developments, while spreads should remain relatively unchanged.
($ = 0.811383 euro)