Governor Tabaković participates in IMF Managing Director’s conference with CESEE governors and finance ministers

Ms Jorgovanka Tabaković, NBS Governor and Serbia’s Governor to the IMF, has participated today in the virtual conference organised by IMF Managing Director Kristalina Georgieva. This high-level conference, which gathered governors and finance ministers of Central, Eastern and South-Eastern Europe (CESEE), focused on economic prospects and challenges facing Europe amid the pandemic.

The participants informed each other about the measures undertaken to mitigate the negative effects of the pandemic and the results of these measures. They also discussed the strategies to ensure economic recovery and faster growth in the medium run.

Ms Georgieva held the opening speech and was followed by Mr Alfred Kammer, the new Director of the IMF European Department, who presented the economic outlook for Europe. “The IMF’s new forecasts for Europe are somewhat less pessimistic than three months ago. While sharp downturns are expected for a large number of countries this year, including even two-digit falls, the best outcomes are expected for Serbia and Lithuania”, said Governor Tabaković. “If we also take into account the latest IMF’s statement following the completed fifth review of the current Policy Coordination Instrument, this year by far the best result in Europe is projected for Serbia”, added the Governor.

The Governor stressed that one of the conclusions of the meeting was that the European countries which had created fiscal room in the prior period were the ones able to adopt and implement large fiscal packages, Serbia being among them. Central banks throughout Europe eased their monetary policies significantly, using various channels. Some economies saw a dramatic reduction in interest rates, including Serbia, which also arranged a precautionary repo line with the ECB, as yet another instrument to be potentially used in emergency situations.

Central banks and governments throughout Europe adopted measures to assist borrowers in order to moderate economic shocks, prevent volatility in financial markets and preserve financial stability. “Serbia stands out also in terms of the measures taken by the central bank to support the liquidity of all market participants, to encourage lending and prevent shocks in financial markets. Serbia was mentioned in the group of countries that adopted a whole set of measures to ease the financial position of citizens and firms, including a temporary moratorium on payment of loan liabilities to banks”, said the Governor.

“In Serbia, we responded to the crisis with the right and well-timed measures. The scope of the response puts us among countries that provided the largest support to their citizens and businesses. We have maintained stability and will do everything it takes to catch up soon and compensate for this crisis year”, concluded Governor Tabaković.

Governor’s Office