COVID-19 – Our response

  • The NBS is an institution that reacted immediately to the spread of the coronavirus in our country by taking concrete measures to support the domestic economy.

    At the extraordinary meeting of the NBS Executive Board on 11 March 2020, when the Government of the Republic of Serbia also enacted the first measures, a decision was made to cut all main interest rates of the NBS. The key policy rate was lowered to 1.75%, the deposit facility rate to 0.75% and the lending facility rate to 2.75%. This way, even before the state of emergency was declared, the NBS provided to our citizens and businesses significantly more favourable financing terms, with a view to supporting the domestic economy.

    The main interest rates were lowered further and the terms of financing became even more favourable. At its regular meetings on 9 April, 11 June and 10 December, the NBS Executive Board trimmed the key policy rate by a total 0.75 pp, so that it now stands at 1.00%, while the deposit facility rate was lowered to 0.10% and the lending facility rate at 1.90%.

    Besides, owing to the timely and adequate response of the NBS, the domestic financial sector was supplied with additional dinar and FX liquidity to sustain unhindered flow of credit to local businesses and households. Through these measures the NBS gave an additional impetus and support to the domestic financial system and economic flows. From the first ad hoc FX swap auction (23 March 2020) the NBS provided to banks via its monetary policy instruments (additional and regular FX swap auctions and repo securities purchase auctions) additional:

    • dinar liquidity worth RSD 41.1 bn and
    • FX liquidity worth EUR 96.0 mn.

    The Serbian banking system is exceptionally liquid. The above NBS measures provided additional liquidity to the banking system although it operated at excess liquidity even before that. Excess liquidity is now at its record highs. On 10 June 2020, excess liquidity deposits (banks' overnight deposits with the NBS) reached RSD 291.9 bn, their highest level ever. Together with banks' holdings in the NBS repo portfolio (RSD 40 bn), total excess dinar liquidity on 10 June 2020 came at RSD 331.9 bn.

    Additional dinar liquidity lines for banks

    On 12 November 2020, the NBS decided to act proactively and pre-emptively amid renewed and exacerbated health risks, by providing banks with the possibility of using additional cheap dinar liquidity. Banks were given an opportunity to tap two dinar liquidity lines – additional FX swap purchase auctions and securities purchase repo auctions. Thus, in an environment of a faster than expected recovery of the domestic economy, the NBS sought to maintain a sufficiently high level of available and cheap liquidity in the banking sector and, in turn, in the corporate sector, in order to sustain the stimulating effect.

    The banking sector is still operating at considerable excess dinar liquidity, and the provision of additional assets should make financing conditions even more favourable by maintaining low interest rates and encouraging banks’ lending activity. By organising regular weekly swap and repo auctions (swap on Mondays and repo on Thursdays), the NBS gives an opportunity to banks to obtain the necessary dinar liquidity for a three-month period under favourable conditions, using FX or dinar securities as collateral. The first auctions were held on 16 November (swap) and 19 November (repo).

    As of 15 March 2021, the NBS stopped implementing additional FX swap auctions, as its analysis of banking sector liquidity and monetary trends showed that these auctions served their purpose well and that they are no longer necessary. Still, the NBS will continue to support banks by holding additional auctions of repo purchase of dinar securities on a regular weekly basis (Thursdays).

    Current balance of supplied dinar liquidity:

    • auctions of repo purchase of dinar securities – RSD 27.5 bn.

     

  • 20/07/2020
  • 17/07/2020
  • 13/04/2020
  • 09/04/2020
  • 31/03/2020
  • 24/03/2020
  • 24/03/2020
  • 20/03/2020
  • 19/03/2020
  • 11/03/2020
  • The NBS is an institution that reacted immediately to the spread of the coronavirus in our country by taking concrete measures to support the domestic economy.

    With its regular and ad hoc activities the NBS fully supports our people and businesses, as well as the Government’s efforts to enact and implement programmes of measures to support the Serbian economy.

    Programme of economic measures to mitigate the negative effects of the COVID-19 pandemic and support the Serbian economy
    https://media.srbija.gov.rs/medsrp/dokumenti/paket-ekonomske-mere-covid19.doc
    Government of the Republic of Serbia (COVID-19)
    https://www.srbija.gov.rs
    Legal-information system of the Republic of Serbia – Regulations and other acts (COVID-19)
    http://www.pravno-informacioni-sistem.rs/fp/covid19
  • 24/03/2020 Supplements to the Decision on Reporting on Foreign Credit Transactions prescribe that during the state of emergency the reporting forms, normally submitted to the NBS in paper and electronic form, may now be submitted in electronic form only, while the documents usually submitted in paper, may now also be submitted in electronic form (pdf format). The supplements also stipulate that the NBS will verify and record the said forms in electronic form during the emergency state.

    24/03/2020 The Decision on Detailed Terms and Manner of Keeping the Single Register of Safe-Deposit Boxes and the Decision on Detailed Terms and Manner of Keeping the Single Register of Money Remittance Beneficiaries have been amended by way of deleting the provisions pursuant to which banks were required to meet by 15 April 2020 all the necessary technical requirements for the submission of data to the NBS in accordance with those decisions and to inform the NBS thereof.

Press releases

Date:
15/12/2020
Author:
Governor’s Office
Date:
13/11/2020
Author:
Governor's Office
Date:
18/08/2020
Author:
Governor's Office
Date:
28/07/2020
Author:
Governor’s Office
Date:
20/07/2020
Author:
Governor's Office
Date:
17/07/2020
Author:
Governor's Office
Date:
17/06/2020
Author:
Governor’s Office
Date:
25/05/2020
Author:
Governor's Office
Date:
20/05/2020
Author:
Governor's Office
Date:
07/05/2020
Author:
Governor's Office
Date:
04/05/2020
Author:
Insurance Supervision Department
Date:
02/05/2020
Author:
Governor's Office
Date:
15/04/2020
Author:
Insurance Supervision Department
Date:
13/04/2020
Author:
Governor's Office
Date:
10/04/2020
Author:
Payment System Department
Date:
09/04/2020
Author:
Governor's Office
Date:
09/04/2020
Author:
Governor’s Office
Date:
06/04/2020
Author:
Governor's Office
Date:
31/03/2020
Author:
Governor’s Office
Date:
31/03/2020
Author:
Governor's Office
Date:
27/03/2020
Author:
Governor's Office
Date:
27/03/2020
Author:
Governor's Office
Date:
27/03/2020
Author:
Governor’s Office
Date:
25/03/2020
Author:
Governor’s Office
Date:
24/03/2020
Author:
Governor’s Office
Date:
24/03/2020
Author:
Governor’s Office
Date:
23/03/2020
Author:
Centre for Information Systems Supervision
Date:
20/03/2020
Author:
Governor's Office
Date:
20/03/2020
Author:
Payment System Department
Date:
20/03/2020
Author:
Governor's Office
Date:
19/03/2020
Author:
Governor's Office
Date:
18/03/2020
Author:
Governor’s Office
Date:
17/03/2020
Author:
Governor's Office
Date:
17/03/2020
Author:
Financial Stability Department
Date:
12/03/2020
Author:
Governor's Office