Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline|
|01A - Short-term lending info_outline|
|01B - Support policies for short-term lending info_outline|
|01C - Forex operations info_outline|
|02 - Credit creation info_outline|
|02A - Financial sector lending/funding info_outline|
|02B - Support policies for long-term lending info_outline|
|02B1 - Interest rate adjustments|
|02B2 - Other policies to support long-term lending|
|02C - Loan guarantees|
|03 - Direct long-term lending info_outline|
|03A - Long-term lending info_outline|
|03B - Forbearance|
|04 - Equity support info_outline|
|05 - Health and income support||USD35,000,000||USD35,000,000|
|05A - Health support||USD20,000,000||USD20,000,000||
(i) To address the emergency caused by COVID-19, the national government has prepared a USD20 million (or about 5% of GDP) COVID-19 Response Framework, in order to develop quarantine and isolation facilities across the nation, provide mandatory infection control training for all first responders, and increase testing capacity and ventilators for each island state in the Federated States of Micronesia; 24 August 2021, (ii) Approximately 57% of the adult population is fully vaccinated against COVID-19; (iii) In addition to Moderna and Johnson & Johnson vaccines, FSM has recently received the Pfizer-BionTech COVID-19 vaccine, which carries full US FDA approval and is suitable for vaccinating adolescents aged between 12 to 17 years old; (iv) 13 September 2021, To date, 61.1% of the FSM’s adult population is fully vaccinated against COVID-19 [update].
|05B - Income support||USD15,000,000||USD15,000,000|
|05B1 - Tax and contribution deferrals and policy changes|
|05B2 - Tax and contribution rates reduction|
|05B3 - Subsidies to individuals and households||
13 September 2021, The president requested the Congress to appropriate approximately USD2 million to augment the FSM Social Protection Program for Low-Income Household Assistance, which is otherwise funded in whole by the generous assistance of the Asian Development Bank [update].
|05B4 - Subsidies to businesses|
|05B5 - Indirect income support|
|05B6 - No breakdown (income support)||USD15,000,000||USD15,000,000||
(i) 22 April 2020, The government approved the economic stimulus package of USD15 million (about 3.8% of GDP). The package includes measures to support affected businesses, including wage subsidies, debt relief, as well as social security tax and other tax rebates; (ii) 13 September 2021, The president requested to extend Economic Stimulus Package (i.e. the Tourism Sector Mitigation Fund) for businesses to 30 June 2022 [update].
|05C - No breakdown (health and income support)|
|06 - Budget reallocation info_outline|
|07 - Central bank financing government|
|07A - Direct lending and reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||USD57,574,600||USD57,574,600|
|08A - Swaps info_outline|
|08B - International loans/grants||USD57,574,600||USD57,574,600|
|08B1 - Asian Development Bank||USD29,080,000||USD29,080,000||
(i) 31 March 2020, USD0.47 million under the COVID-19 Emergency Response; (ii) 8 April 2020, USD0.71 million under the TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreak of Other Communicable Disease. As of 17 July 2020, the amount decreased to USD0.47 million. As of 12 February 2021, the amount increased to USD0.61 million; (iii) 15 April 2020, USD0.02 million technical assistance under Strengthening Social Protection in the Pacific; (iv) 17 April 2020, USD6 million under the Pacific Disaster Resilience Program (Phase 2); (v) 24 April 2020, USD0.13 million technical assitance under Developing the Pacific Health Sector (Additional Financing); (vi) 5 June 2020, USD0.14 million technical assistance under Pacific Economic Management (Additional Financing); (vii) 29 July 2020, USD1.03 million under COVID-19 Emergency Response; (viii) 10 August 2020, USD0.35 million under Knowledge and Support Technical Assistance for Strengthening Water, Sanitation, and Hygiene Practices and Hygiene Behavioral Change in the Pacific; (ix) 12 August 2020, USD0.23 million technical assitance under "Support for gender sensitive responses to COVID-19 in the Pacific Developing Member Countries; (x) 12 November 2020, USD14 million CPRO "Health Expenditure and Livelihood Support Program"; (xi) 11 December 2020, USD6 million Pacific Disaster Resilience Program (Phase 3); (xii) 17 December 2020, USD0.10 million technical assistance under "Supporting MSMEs in the Pacific from the Effects of COVID-19 Pandemic".
|08B2 - Other||USD28,494,600||USD28,494,600||
(i) 27 March 2020, USD7.7 million supplemental funding signed by Trump under the CARES Act through the US DOI Office of Insular Affairs’ Technical Assistance Program; (ii) 30 March 2020, USD27.6 thousand awarded by US HHS Office of the Assistant Secretary for Preparedness and Response; (iii) 1 April 2020, USD1.26 million allocated by US Department of Health and Human Services; (iv) 8 April 2020, USD3.11 million awarded by US HHS Health Resources and Services Administration to support 5 health center grantees in Chuuk (1), Kosrae (2), Pohnpei (1), and Yap (1); (v) 14 April 2020, the Honorable Livingston A. Taulung, Secretary of the Federated States of Micronesia’s (FSM) Department of Health & Social Affairs and Chair of the COVID-19 Task Force, received His Excellency Huang Zheng, Ambassador of the People’s Republic of China (China) in a handover ceremony wherein the Ambassador presented, on behalf of the people and Government of China, medical supplies and a cash donation of USD100,000 to assist the FSM in combatting the COVID-19 Pandemic; (vi) April 2020, The Joint Economic Management Committee, comprised of U.S. and Micronesian government representatives, approved USD1.65 million for Yap and USD1.40 million for Chuuk in prior-year unallocated Compact sector grant funding to be used for health-related COVID-19 preparedness and planning. For Kosrae, USD1.2 million in Compact infrastructure sector grant assistance was approved for construction of a 24-unit COVID quarantine facility. In addition, USD417 thousand in prior-year Compact Infrastructure Maintenance Fund assistance has been provided to Chuuk to assist with hospital infrastructure preparedness; (vii) 13 May 2020, USD300,000 from UN COVID-19 Response & Recovery Fund to Support COVID-19 Contingency Plan for Federated States of Micronesia; (viii) 1 September 2020, USD1.66 million Airport Improvement Program from the US Federal Aviation Administration; (ix) April 2021, USD9.67 million under American Rescue Plan Act Awards for COVID-19 response.
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown|
|11 - Other Economic Measures||
(i) No monetary policy response. With the U.S. dollar its legal tender, the FSM does not have a central bank; and (ii) No exchange rate policy response, given that U.S. dollar is the legal tender of the FSM.
|12 - Non-Economic Measures|
|12A - Measures affecting travel and transport (local and international)||
(i) The national and state governments have introduced travel restrictions; banning or requiring 14-day self-quarantine prior to entry into the Federated States of Micronesia; and restricting residents from traveling abroad; (i) 30 November 2020, relaxed outward travel restrictions, allowing residents to travel abroad; (iii) 5 April 2021, The government extended the state of public health emergency acroess FSM until 31 May 2021 and further extended until 30 September on 27 May 2021. 13 September 2021, The president requested to extend the Declaration of Public Health Emergency to 31 January 31 2022 [update]; (iv) 24 August 2021, The states of Yap and Kroskae have recently repatriated citizens from Palau and Guam; (v) 6 September 2021, The president has extended the mandatory Guam-based pre-quarantine for repatriating citizens and residents to 10 days from its previous requirement of 7 days. The extension allows the government to implement 2 COVID-19 tests to repatriating persons prior to their arrival into the FSM [update].
|12B - Measures affecting business and workplace||
The state of Chuuk closed schools.
|12C - Others||
(i) 20 May 2021, In an effort to step up their mitigation of potential corruptions risks in public procurement in response to COVID-19, government officials went through a training session, supported by the United Nations Pacific Regional Anti-Corruption (UN-PRAC) Projec; (ii) 10 August 2021, The president signed a decree mandating all individuals & organizations receiving money from the FSM national government to show evidence of COVID-19 vaccination. 18 August 2021, The mandatory requirement for FSM Social Security beneficiaries to receive their COVID-19 vaccination has been extended from 31 August to 30 September 2021 to give ample time to the nation’s elderly citizens to complete their vaccination.