The Response of the Monetary and Fiscal Policies on COVID 19 in Serbia

Expert article
Author: Vesna Martin
doi: 10.5937/bankarstvo2002070M
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.

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