The shutdown of Israel's economy due to coronavirus will come at a cost of up to 130 billion shekels ($36 billion), which is 10% of the nation's GDP, the Treasury warned Tuesday.
Governor of the Bank of Israel Professor Amir Yaron said that Israel would spend 90 billion shekels ($25 billion) to battle the corona crisis "in a short-term scenario," or 130 billion shekels "in a longer-term scenario."
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"Without health, there is no economy, but without an economy, there will be no health."
Yaron went on to explain that the extent of the economic blow would depend on government policies.
"I am in daily contact with the prime minister. Right now, the ball is in the Knesset's hands, and I am calling on the MKs to rise above political considerations," the governor said.
"This is the time to support businesses. To enable businesses to recover once the restrictions are lifted, we have to help the people who have been hurt and the ones who have been laid off," he added.
For now, the Bank of Israel has not lowered the interest rate, unlike many other countries, but on Tuesday Yaron said: "If things get worse in the financial markets, the Bank of Israel has additional monetary tools that it will not hesitate to employ."
