Serbia - Catalyzing Long Term Finance through Capital Markets Project : Mid Term Review Report

Overview & Synopsis

This Mid-Term Review assesses the progress of the Catalyzing Long-Term Finance for Capital Markets Project (P176069) in Serbia. The project aims to strengthen the capital market ecosystem, improve the enabling environment for capital markets, and deepen the corporate bond market, including green and thematic bond issuances. At the review stage, notable achievements include the establishment of the Capital Markets Policy and Regulatory Unit, progress on regulatory alignment with international standards, upgrades to the Central Securities Depository, and the successful issuance of two inaugural corporate bonds, including a green bond. However, implementation has faced delays in key reform and infrastructure activities, resulting in a disbursement rate below target. The review concludes that the project remains relevant and strategically important, recommending accelerated implementation of delayed activities, stronger investor outreach, and targeted policy reforms to support sustainable market development and achievement of project objectives by closure.