The government of the Republic of Serbia has issued Regulations on General Conditions for the Issuance and Sale of Government Securities on the Primary Market, thus replacing regulations that previously governed this matter (the General Conditions for the Issuance and Sale of Government Securities on the Primary Market of 2005 and General Conditions for the Issuance and Sale of Short Term Government Securities on the Primary Market of 2009). The provisions are applicable as of 1st of October 2014 for both long-term and short-term securities.
An important change introduced with the new regulation is the increase of the maximum bid limit per investor to 50% of total issue size (or auction size in case of issue re-opening), from previously 30%.
The government retained the possibility of entering into a private placement deal with a resident or nonresident qualified investor outside the primary auction for the purpose of cost reduction, an option that existed also in previous regulations.
Impact on Investors: The maximum bid limit per investor on primary auctions of Serbian government securities organised after 1st of October is 50% of total issue size (or auction size in case of issue re-opening). This is an increase of the limit from previously 30%. Non-resident investors continue to be prohibited from purchasing and holding short-term securities on the basis of FX Law.