Capital Market Development in Serbia: Nobody Said It would be Easy!
SmartLessons, November 2010
4 Pages Posted: 29 Dec 2010
Date Written: November 22, 2010
In early 2009, due to the impact of the global financial crisis, the Serbian government started relying on issuing treasury bills in its domestic market to fund its fiscal needs. Unfortunately, the auctions failed repeatedly. Some donors funded technical assistance, but the situation remained largely unchanged. As part of the World Bank’s technical assistance to the government of Serbia, the Bank team got involved and provided support to the authorities. To address the problem, we reviewed the market situation, built consensus, and drew up a customized and programmatic reform plan. The plan was adopted by the authorities, and the observed problems with auctions during this period were resolved. This paper describes what we learned in assisting a typical small economy in developing its local currency debt market.
Suggested Citation: Suggested Citation