CARIC: Banks Better Prepared for Crisis Than in 2008

Slavko Caric, the chairman of the Executive Board of Erste Bank Serbia, says that the coronavirus crisis has led to a crisis of supply, a crisis of demand and a crisis of trust.

– In a crisis of trust, banks have to play an important role, but can't do it alone. We have prepared a set of measures with the National Bank of Serbia. The key policy rate has been lowered and there's a moratorium on all credits – Caric said.

He says that this will enable clients to achieve liquidity and be functional.

Caric says that the banks are now much better prepared for the crisis than they were in 2008.

According to him, 90% of the clients want a moratorium and only 10% have said they didn't need it and that they want to continue repaying their debts.

– Don't go into overdraft, as the interest is high – Caric advises.

He says that, around ten days ago, daily client payments stopped, so he welcomes the measures of the Ministry of Finance which allow banks to give money more easily to those who need it.

– The banks have taken a big risk upon themselves, but can handle it – he said.

Erste Bank a.d. Novi Sad

Ministarstvo finansija Republike Srbije

Narodna banka Srbije Beograd

Erste Bank

Ministry of Finance

NBS

Slavko Carić

banks

crisis

moratorium

overdraft

key policy rate

coronavirus

help to economy

set of measures for help to economy

economy stimulus package

moratorium on credits

credits