Author: Vesna Martin
Keywords: monetary policy, fiscal policy, Covid-19, economic activity, moratorium, fiscal stimulus
JEL: E63, H12, I18
Summary: The coronavirus disease 2019, recognizable under the abbreviation Covid-19, is an infectious disease caused by the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The disease appeared in Wuhan, China in December 2019, and then spread to the entire world. The imposed measures of isolation and social distancing have led to a reduction in the volume and, in many cases, a complete cessation of economic activity in many industries. In order to remedy the effects of the coronavirus, the National Bank of Serbia and the Ministry of Finance, each in their respective jurisdiction, have adopted a set of measures. The National Bank of Serbia lowered the key reference rate to support credit and economic growth, then provided additional dinar and foreign currency liquidity to the banking sector, through EUR/RSD swaps and repo auctions, and made decisions prescribing a moratorium on debt payments. The Ministry of Finance has adopted a The Program of Economic Measures for Reducing the Negative Effects Caused by the Covid-19 Pandemic and Supporting the Serbian Economy. The Program includes tax policy measures, direct assistance to the private sector, measures to preserve liquidity for the private sector and other measures.