Economy Measure Code Measure Currency Code Amount (Local) Amount (USD) Source Details
Tonga 01 01 - Liquidity Support TOP
Tonga 01A 01A - Short-term lending TOP
Tonga 01B 01B - Support policies for short-term lending TOP
Tonga 01C 01C - Forex operations TOP IMF. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 (accessed 21 January 2020).

No amount/estimate: (i) 19 March 2020, The National Reserve Bank of Tonga (NRBT) Board committed to easing exchange control requirements if needed. The exchange rate remains pegged against a basket of currencies (within a ±5% monthly adjustment limit). No new exchange restrictions have been announced. International reserves were at 7.4 months of imports at end-May 2020; (ii) As of end-June 2020, international reserves increased to 8.2 months worth of imports (around TOP543.8 million); (iii) Further, as of end-August 2020, international reserves increased to 8.5 months worth of imports (around TOP555.9 million). As of end-October 2020, this rose to 9.7 months worth of imports (around TOP581.6 million). As of end-November 2020, this stood at 9.9 months worth of imports (around TOP590.2 million).

Tonga 02 02 - Credit creation TOP
Tonga 02A 02A - Financial sector lending/funding TOP
Tonga 02B 02B - Support policies for long-term lending TOP
Tonga 02B1 02B1 - Interest rate adjustments TOP
Tonga 02B2 02B2 - Other policies to support long-term lending TOP IMF. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 (accessed 7 May 2020).

No amount/estimate: Monetary policy, which has been accommodative given low inflation and slow economic recovery, remained on hold.

Tonga 02C 02C - Loan guarantees TOP
Tonga 03 03 - Direct long-term lending TOP
Tonga 03A 03A - Long-term lending TOP
Tonga 03B 03B - Forbearance TOP IMF. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 (accessed 7 May 2020).

No amount/estimate: (i) The Government of Tonga announced a 3-month moratorium on Government Development Loans and TC Gita Recovery Loan Fund; (ii) Commercial banks are assisting their customers affected by the COVID-19 virus on a case by case basis and depending on individual customers’ circumstances by (a) reducing or suspending the principal loan repayments to interest only loan repayments; (b) restructuring loans to businesses that have reduced business hours, in affected sectors such as tourism and related industries like transportation and to individuals who have been laid off; (c) extending the terms of loans to reduce repayments; (d) reducing loan interest rates on a case by case basis; and (e) providing access to short-term funding, if required.

Tonga 04 04 - Equity support TOP
Tonga 05 05 - Health and income support TOP 60,000,000 26,119,636
Tonga 05A 05A - Health support TOP 20,000,000 8,706,545 IMF. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 (accessed 7 May 2020).

(i) 2 April 2020, Based on an initial assessment of the overall impact of COVID-19 on the economy, the Government of Tonga announced an Economic and Social Stimulus Package of TOP60 million (5.3% of GDP) for FY 2020. This package is intended to provide short-term assistance to all affected sectors in response to the COVID-19 pandemic. Over a third of the funds will be directed to the health sector, while the rest will support the other sectors, including tourism, transport, agriculture, education and security.

Tonga 05B 05B - Income support TOP 40,000,000 17,413,091
Tonga 05B1 05B1 - Tax and contribution deferrals and policy changes TOP IMF. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 (accessed 7 May 2020).

(i) No amount/estimate: The Government of Tonga announced a deferral of retirement contributions and hardship allowances for laid-off employees (up to 3 months)

Tonga 05B2 05B2 - Tax and contribution rates reduction TOP IMF. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 (accessed 7 May 2020).

(i) Tax and duty relief during the pandemic.

Tonga 05B3 05B3 - Subsidies to individuals and households TOP IMF. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 (accessed 7 May 2020).

(i) Needs-based financial assistance for individuals during the COVID-19 pandemic.

Tonga 05B4 05B4 - Subsidies to businesses TOP IMF. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 (accessed 7 May 2020).

(i) Assistance with the payment of utility bills by public enterprises.

Tonga 05B5 05B5 - Indirect income support TOP
Tonga 05B6 05B6 - No breakdown (income support) TOP 40,000,000 17,413,091 IMF. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 (accessed 7 May 2020).

(ii) This covers two-thirds of the TOP60 million Stimulus Package in Measure 5A under Health. The measures undertaken are separately presented in 5B1-5B5, but with no amounts disclosed by the Government.

Tonga 05C 05C - No breakdown (health and income support) TOP
Tonga 06 06 - Budget reallocation TOP
Tonga 07 07 - Central bank financing government TOP
Tonga 07A 07A - Direct lending and reserve drawdown TOP
Tonga 07B 07B - Secondary purchase: government securities TOP
Tonga 08 08 - International Assistance Received TOP 201,845,612 87,868,900
Tonga 08A 08A - Swaps TOP
Tonga 08B 08B - International loans/grants TOP 201,845,612 87,868,900
Tonga 08B1 08B1 - Asian Development Bank TOP 69,143,382 30,100,000 ADB. https://www.adb.org/projects/54135-002/main#project-pds; ADB. https://www.adb.org/news/adb-provides-tonga-6-million-covid-19-assistance (both accessed 7 May 2020). ADB. Table A1.4 Asia Pacific Disaster Response Fund and Technical Assistance, Table A1.5: Country Support under TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases (all accessed as of 5 February 2021).

(i) 6 April 2020, USD0.47 million - Grant 0693-TON: COVID-19 Emergency Response (Additional Financing); (ii) 15 April 2020, USD0.08 million announced by the ADB as part of the Strengthening Social Protection in the Pacific program. On 24 July 2020, additional USD0.15 million co-financing under the same program; (iii) 15 April 2020, ADB today announced the release of a USD6 million (TOP13.9 million) grant from its Pacific Disaster Resilience Program (Phase 2) to help finance the Government of Tonga’s response to the novel coronavirus disease (COVID-19) pandemic; (iv) 24 April 2020, USD0.13 million allocated by the ADB as additional funding to Tonga under the Regional Project on Developing the Pacific Health Sector; (v) USD0.46 million allocation for TA9950-REG: Regional Support to Address the Outbreak of Coronavirus Disease 2019 and Potential Outbreaks of Other Communicable Diseases. As of 30 January 2021, this has been increased to USD0.60 million [update]; (vi) 5 June 2020, USD0.14 million in financing under the Pacific Economic Management, Phase 3 project; (vii) 25 June 2020, USD12.2 million in ADF grant under the Strengthening Macroeconomic Resilience Program, with another USD6.92 million co-financed by Australia and New Zealand; (viii) 10 August 2020, USD0.17 million under the regional project, Knowledge and Support Technical Assistance for Strengthening Water, Sanitation, and Hygiene Practices and Hygiene Behavioral Change in the Pacific; (ix) 12 August 2020, USD0.06 million under the regional project, Support for Gender Sensitive Responses to COVID-19 in the Pacific Developing Member Countries; (x) 14 December 2020, USD10 million under the Pacific Disaster Resilience Program (Phase 3); (xi) 17 December 2020, USD0.25 million from the regional project, Supporting Recovery by Micro, Small and Medium-sized Enterprises in the Pacific from the Effects of the COVID-19 Pandemic.

Tonga 08B2 08B2 - Other TOP 132,702,230 57,768,900 ABC News. https://www.abc.net.au/news/2020-05-20/australia-financial-support-pacific-governments-cyclone-pandemic/12262328 (accessed 28 May 2020); World Bank. https://www.worldbank.org/en/news/press-release/2020/05/07/world-bank-approves-400-million-to-sustain-afghanistans-reform-momentum-mitigate-covid-19-crisis (accessed 15 May 2020); World Bank. https://www.worldbank.org/en/news/loans-credits/2020/06/05/tonga-climate-resilient-transport-project-additional-financing-covid19-coronavirus (accessed 10 June 2020); Yale. https://som.yale.edu/faculty-research-centers/centers-initiatives/program-on-financial-stability/covid-19-crisis (accessed 10 June 2020); World Bank. https://www.worldbank.org/en/news/press-release/2020/12/16/30-million-in-support-for-tongas-most-vulnerable (accessed 7 January 2021); IMF. https://www.imf.org/en/Topics/imf-and-covid19/COVID-Lending-Tracker (accessed 29 January 2021).

(i) 12 May 2020, USD8.4 million funding from the World Bank to strengthen resilience and fight against the COVID-19 Pandemic; (ii) 20 May 2020, AUD10.5 million in quick financial support from Australia to support Pacific countries hit by both the recent cyclone and pandemic; (iii) 5 June 2020, USD2.89 million equivalent grant to Tonga to to improve the climate resilience of the transport sector, and in the event of an Eligible Crisis or Emergency, to provide an immediate response to the Eligible Crisis or Emergency. The financing provided under this project will support urgent needs created by the COVID-19 crisis; (iv) 16 December 2020, USD30 million funding from the World Bank in support for Tonga's most vulnerable, under the Tonga: Supporting Recovery After Dual Shocks Development Policy Operation. It will support Tongan businesses, workers and vulnerable households to recover from the dual shocks caused by the COVID-19 pandemic and the recent typhoons; (v) 25 January 2021, USD9.95 million Rapid Credit Facility (RCF) from the IMF as emergency financing and debt relief. [update]

Tonga 09 09 - International Assistance Provided TOP
Tonga 09A 09A - Swaps TOP
Tonga 09B 09B - International loans/grants TOP
Tonga 10 10 - No breakdown TOP
Tonga 11 11 - Other Economic Measures TOP IMF. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 (accessed 7 May 2020).

Commercial banks are assisting their customers affected by the COVID-19 virus on a case by case basis and depending on individual customers’ circumstances by: (i) Reducing or suspending the principal loan repayments to interest only loan repayments; (ii) Restructuring loans to businesses that have reduced business hours, in affected sectors such as tourism and related industries like transportation and to individuals who have been laid off; (iii) Extending the terms of loans to reduce repayments; (iv) Reducing loan interest rates on a case by case basis; and (v) providing access to short-term funding, if required.

Tonga 12 12 - Non-Economic Measures TOP
Tonga 12A 12A - Measures affecting travel and transport (local and international) TOP IMF. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 (accessed 7 May 2020).

(i) The Government of Tonga has been introducing increasingly restrictive containment measures since January 2020; (ii) In March 2020, it toughened measures for incoming travelers, while all international cruise ships and yachts were barred indefinitely; (iii) On 21 March 2020, Tonga declared a state of National Emergency. As a preventive measure, a nation-wide lockdown came into effect on 29 March 2020, which entails the prohibition of all flights into the country and all public transportation inside the country, a stay-at-home order, a night-time curfew and the prohibition of public gatherings; (iv) The state of National Emergency and the border closure have been extended until 28 September 2020 and 12 September 2020, respectively.

Tonga 12B 12B - Measures affecting business and workplace TOP IMF. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 (accessed 7 May 2020).

(i) Closure of all non-essential businesses and public facilities.

Tonga 12C 12C - Others TOP IMF. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 (accessed 21 January 2021).

(i) The authorities started easing restrictions on 12 April 2020, by lifting the national lockdown, and domestic restrictions were further eased on 11 June 2020, for example by further reducing curfew hours and relaxing restrictions removing the prohibition on the size of permissible gatherings contact sports; (ii) The state of National Emergency and the border closure, however, have been extended until 28 September 2020 and 12 September 2020, respectively. As of January, the National Emergency was extended until 18 January 2021.