given, and we should take note of the points raised in that s & p report, in which they point out that there is a possibility that israel ’ s good rating will decrease should the economic crisis extend longer than expected, or if there is a lack of fiscal convergence in the medium term and instability to a debt to gdp ratio around 80 percent. i would like to emphasize the importance of maintaining the credit rating. the economic significance is that the state of israel can issue debt at more convenient prices, and the government ’ s interest expenditures are smaller, so that more resources can be allocated to growth drivers and assistance to citizens. as there is considerable uncertainty regarding the macroeconomic environment, we can see a large difference between the forecast for the deficit and the debt to gdp ratio under scenarios in which there is a lot or a little control of morbidity. therefore, in order to reduce the uncertainty, a reduction is required in the expenditure side, “ the numerator ”, which can be controlled more effectively than the denominator side — the size of gdp. we can see the change in the debt to gdp ratio under the 2 scenarios of control and low control over morbidity. as noted, it is very important that this ratio doesn ’ t run wild. this will require tight fiscal restraint. we should also note that there won ’ t be a rapid convergence to even a structural - deficit target of 2. 5 percent. in contrast, this ratio will decline to the extent that we will be able to improve productivity and growth of gdp — something that naturally will improve the standard of living in the economy. therefore, we need to put into the 2021 budget already growth accelerators to exit the crisis, and to invest in issues that support productivity, such as human capital, decreasing bureaucracy and regulation and increasing the efficiency in the public sector, in physical capital and infrastructures — details on the implementation of these items can be found in the bank of israel ’ s productivity report. 4 / 6 bis central bankers'speeches it is very important to approve the budget for 2021 very soon, it is the government ’ s economic work plan. the interim budget through which the government is currently operating is causing the government to operate under a budget based on the budget for 2019, which was approved during 2018, and that is about 5. 5 percent lower, in real terms, than the situation in which budgets would be approved based on the expenditure limitation. this is liable to lead to fiscal restraint for reasons that

is, and granted independence to their central banks. there is a vast amount of research showing that an economy performs better when the central bank is independent. central bank independence is thus important for the achievement of sustainable growth, price stability, and financial stability. hence, central bank independence is one of the considerations of domestic and foreign investors in deciding where to invest. this consideration is expressed, among other things, in the country's rating and in the costs incurred by the government and the private sector in raising capital. it is also important that the independence of the central bank be accompanied by fruitful cooperation between it and the government, including the ministry of finance. on this point i would like to mention the excellent cooperation between the minister of finance and me, and between the senior personnel in the ministry of finance and the bank. the modern approach to central bank independence is expressed in the laws relating to modern central banks in advanced countries worldwide. this is also the approach underlying the new bank of israel bill which we are drafting in conjunction with the ministry of finance and with the support of the prime minister. this law will comply with the accepted standards of central banks in advanced countries, and will also, and mainly, serve the economy, the state and its citizens in the best possible way. i hope that the government will present the new bill to the knesset in the very near future. this will be a further milestone in building the foundations of an advanced and modern economy in israel. that will be an achievement the state of israel and its citizens can be proud of as the country celebrates its 60th anniversary.