Bank of Israel Governor: Crisis Bond Purchase to Back Up Pandemic Stimulus

The transcript discusses the economic resilience of Israel during the COVID-19 crisis, highlighting the importance of strategic lockdowns, unemployment support, and clear communication. It covers the expansion of the QE program by the Bank of Israel to support financial markets and ensure credit flow. The transcript also addresses currency intervention to stabilize the shekel and protect the export sector. Finally, it explores the debate on negative interest rates and emphasizes the need for creative solutions to support sectors like tourism while maintaining responsible credit distribution.

Explain the relationship between fiscal support and credit conditions as described in the text.

What challenges do banks face when lending to sectors like tourism during the crisis?

What strategies were proposed to ensure that credit flows to the most affected sectors?