Economy Measure Code Measure Currency Code Amount (Local) Amount (USD) Source Details
Tonga 01 - Liquidity Support
Tonga 01A - Short-term lending
Tonga 01B - Support policies for short-term lending
Tonga 01C - Forex operations IMF. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 (accessed 7 May 2020).

No amount/estimate: (i) March 19, 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 remain at 7.4 months of imports at end-February 2020; (ii) International reserves declined to 6.8 months of imports at end-March 2020 [update].

Tonga 02 - Credit creation
Tonga 02A - Financial sector lending/funding
Tonga 02B - Support policies for long-term lending 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 - Loan guarantees
Tonga 03 - Direct long-term lending
Tonga 03A - Long-term lending
Tonga 03B - Forbearance 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 - Equity support
Tonga 05 - Government support to income/revenue 60,000,000 26,119,636
Tonga 05A - Health 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).

April 2, 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 - Non-health 40,000,000 17,413,090 IMF. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 (accessed 7 May 2020).

(i) This covers two-thirds of the TOP60 million Stimulus Package for other sectors in Measure 5 under Health; (ii) No amount/estimate: The Government of Tonga announced a deferral of retirement contributions and hardship allowances for laid-off employees (up to 3 months), needs-based financial assistance, tax and duty relief during the pandemic, and assistance with the payment of utility bills by public enterprises.

Tonga 06 - Budget reallocation
Tonga 07 - Central bank financing government
Tonga 07A - Direct lending & reserve drawdown
Tonga 07B - Secondary purchase: government securities
Tonga 08 - International Assistance Received 36,087,791 15,710,000
Tonga 08A - Swaps
Tonga 08B - International loans/grants 36,087,791 15,710,000
Tonga 08B1 - Asian Development Bank 16,791,964 7,310,000 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. ADB 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 (both accessed as of 9 May 2020).

(i) April 3, USD0.47 million - Grant 0693-TON: COVID-19 Emergency Response (Additional Financing); (ii) April 16, 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; (iii) April 24, USD0.13 million allocated by the ADB as additional funding to Tonga under the Regional Project on Developing the Pacific Health Sector; (iv) USD0.71 million allocation for TA9950-REG: Regional Support to Address the Outbreak of Coronavirus Disease 2019 and Potential Outbreaks of Other Communicable Diseases.

Tonga 08B2 - Other 19,295,827 8,400,000 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).

May 12, USD8.4 million funding from the World Bank to strengthen resilience and fight against the COVID-19 Pandemic [update].

Tonga 09 - International Assistance Provided
Tonga 09A - Swaps
Tonga 09B - International loans/grants
Tonga 10 - No breakdown
Tonga 11 - Other Economic Measures 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 - Non-Economic Measures 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, it toughened measures for incoming travelers, while all international cruise ships and yachts were barred indefinitely; (iii) On March 21, Tonga declared a state of National Emergency. As a preventive measure, a nation-wide lockdown came into effect on March 29, which entails the prohibition of all flights into the country and all public transportation inside the country, the closure of all nonessential businesses and public facilities, a stay-at-home order, a night-time curfew and the prohibition of public gatherings; (iv) The authorities started easing restrictions on April 12, by lifting the national lockdown. The state of National Emergency and the border closure, however, have been extended until May 15 and June 12, respectively [update].