WASHINGTON, March 16, 2023 – The World Bank Board of Executive Directors approved today a EUR27.7 million ($30 million equivalent) loan to support Serbia in its effort to deepen and further develop its capital markets with a Catalyzing Long Term Finance Through Capital Markets Project.
“Diversified financing sources and instruments along with a deeper financial sector are critical for Serbia’s long-term, sustainable economic growth,” said Nicola Pontara, World Bank Country Manager for Serbia. “This loan will assist the Government of Serbia to implement its Capital Market Development Strategy by strengthening relevant capital market institutions and encouraging corporates to issue bonds, including green and thematic bonds.”
Well-functioning capital markets help diversify financing sources beyond bank financing, which indirectly bolsters economic resilience during credit cycle fluctuations. In addition, corporate bonds could become an attractive alternative source of long-term financing to support Serbia’s green transition objectives.