The economic sector of Serbia, including its capital market, reflects both global challenges and regional specifics. Despite periods of uncertainty, Serbia's capital market shows signs of vitality and growth potential.

The Belgrade Stock Exchange (BELEX) currently facilitates trading in stocks and bonds, with plans to expand into other financial instruments such as derivatives, deposit certificates, and additional debt securities. BELEX lists stocks from public joint-stock companies, while bonds primarily come from the Republic of Serbia and Serbian construction company Energoprojekt Holding. The first quarter of 2024 saw positive trading trends, with significant growth in March. The BELEX15 index increased by 6.92%, and the BELEXline index grew by 7.17%. Messer Tehnogas was the most traded stock, with a turnover of EUR 535,184, followed by Dunav osiguranje at EUR 267,310, and Naftna industrija Srbije with EUR 230,657. These figures indicate positive progress, though there is still room for growth.

A key development in 2023 was the appointment of a new CEO, Ivan Leposavić, at BELEX, signaling the beginning of a new chapter aimed at improving market efficiency and attracting investors. Personnel changes within the Securities Commission, under the leadership of Marko Janković, further demonstrate the commitment to strengthening the capital market.

The Serbian Government, particularly the Ministry of Finance, has shown proactive efforts. The adoption of the capital market development strategy for 2021–2026 marks a concerted push to enhance institutional capacity, refine regulations, and encourage broader participation. Goals include improving the investment environment, legal security, and innovation, along with introducing new financial products. The strategy focuses on diversifying funding sources, promoting green and thematic bonds, and growing alternative investment funds. Additionally, the National Bank of Serbia is working on a draft Law on Crowdfunding, in line with the 2024 Action Plan for Startup Development.

Serbia's capital market is also embracing corporate bonds as an alternative financing option. Following the COVID-19 pandemic, the government introduced incentives to strengthen the economy, including simplified procedures for issuing corporate bonds. While only 10 companies have issued bonds, plans are in place to significantly increase corporate bond issuance in 2024, with the Republic of Serbia covering the costs.

In 2023, the World Bank approved a EUR 27.7 million loan to the Serbian Government, providing a significant boost to the country's financial sector and its capital market. This support enhances the resilience and diversification of the financial landscape, fostering economic growth.

Serbia's recent credit rating reaffirmations from Standard & Poor’s (BB+/positive outlook) and Fitch Ratings (BB+/stable outlook) highlight the country’s strong economic policy and growth potential. These ratings indicate Serbia’s ability to withstand external shocks and provide investor confidence, critical for the continued development of the capital market.
In conclusion, recent developments at BELEX, the World Bank loan, and government efforts demonstrate Serbia's commitment to building a dynamic and resilient capital market. By focusing on institutional strengthening, regulatory improvements, and promoting diverse financial products, Serbia is poised to attract investment and secure economic growth, ensuring a brighter future for its capital market and economy.

Author:
Sava Pavlović
Attorney at Law and Partner at Živković Samardžić Law Firm.