ТРЖИШТЕ ОБВЕЗНИЦА ЈАВНОГ СЕКТОРА У СРБИЈИ: СТАЊЕ И ПЕРСПЕКТИВЕ РАЗВОЈА
PUBLIC SECTOR BONDS MARKET IN SERBIA: STATUS AND PROSPECTS OF DEVELOPMENT

Summary/Abstract: In this paper, the authors analyze the government and municipal bonds in the Republic of Serbia, with special emphasis on the current legislation on this issue, primarily the legal provisions of the 2011 Public Debt Act. The analysis has shown that the process of creating the relevant legal framework necessary for the development of the municipal bonds market in Serbia has been rather slow, even though numerous theorists consistently called attention to the benefits of funding local authorities by issuing municipal bonds and proposed the necessary legislative changes in this area. The legislative process culminated at the point when some local government units in Serbia, forefronted by the City of Šabac, recognized all the prominent advantages of this form of local government funding. Given that all the legal requirements for issuing and trading with municipal bonds in the secondary capital market have been met, the future development of this market in Serbia will depend solely on the efforts of local authorities to actively engage in the not-so-simple process of preparing and implementing the bonds issuance, and subsequently their inclusion in the open capital market where government bonds are already being traded.

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