The Ukrainian central bank (NBU) announced that its reserves had reached a record level. In February, it forecast that they could rise up to the USD32bn by the end of 2022. But the pandemic raises a question whether the NBU will be able to increase the level of its reserves.
In contrast to the global financial crisis, the objective of the current rescue measures is to support the enterprise sector. However, in the event of a protracted pandemic emergency the effects of the economic downturn will also be felt by financial institutions, and in particular banks.
The history of economics does not provide any knowledge about crises like the one we are going through now. But it can teach us how to act quickly and decisively, says Professor Todd Knoop, macroeconomist at the Cornell University in the United States.
A return to business as usual seems to be the natural thing to do after the pandemic ends. But the world is currently acquiring new competencies which enable faster, cheaper, and more efficient operations, while also taking into account security issues. The role of the state will also change.
Niewiele jest firm, których nie dotknęło dwumiesięczne zamrożenie gospodarki. Pandemia zakpiła sobie z prognoz gospodarczych, unieważniła przewidywania, a wobec niepewności co do ewentualnej drugiej fali epidemii – podważyła zasadność prognozowania zysków przedsiębiorstw.
If the situation were to ultimately turn out like in the case of the 14th century plague, then anything we could write now would be nothing but idle talk. However, there is a chance that after the current pandemic we will return to “business as usual” with some adjustments.
Russia’s decision to cut credit support to the Belarusian government as of the beginning of 2020 has forced Minsk to turn to the EU and international lenders for urgent financial support during the coronavirus crisis.
Pandemics are nothing new in the history of human kind. They differ from global economic crises in many ways. Any economic forecasts prepared during a pandemic, including those referring to the shortest possible periods of time, are highly unreliable and can be a source of increased uncertainty.
Since the outbreak of the COVID-19 pandemic in Europe, many companies have seen their market value plummet. European firms that were hit hard become easy targets for foreign investors. The EC wants to introduce screening mechanisms for investments coming from outside the EU.
“The longer the lockdown lasts, the more likely it is that there will be changes in consumer tastes, changes to production techniques and supply chains, and we will build more capacity for emergencies into health systems,” says Paul Tucker, former Deputy Governor of Bank of England