Pacific

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 37.81
% of GDP (2019): 2.43%
% of Regional Total Package: 0.84%
Package Per Capita in USD: 56.45
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
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

No amount/estimate: (i) 15 June 2020, The Central Bank of Solomon Islands (CBSI) has reduced the cash reserve requirements (CRR) from 7.5% to 5% to ensure additional liquidity support; On 11 March 2021, CBSI decided to maintain its CRR at 5%; (ii) 15 June 2020, The bank has reduced its stock of Bokolo Bills, which are similar to Treasury Bills, but are issued by the central bank, to mop up excess liquidity in the financial system.

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

No amount/estimate: (i) April 2020, The central bank has confirmed its commitment to continue maintaining an expansionary monetary policy stance; On 15 September 2020, CBSI has resolved to maintain its expansionary monetary policy for the next six months; On 11 March 2021, this has been further extended to another six months.

02B2 - Other policies to support long-term lending

No amount/estimate: 15 June 2020, The bank also relaxed some commercial banks' Prudential Guidelines (No. 2) on asset classification and provisioning and (No. 8) regarding disclosure of interest rates, fees, and charges.

02C - Loan guarantees
03 - Direct long-term lending info_outline
03A - Long-term lending info_outline

No amount/estimate: May 2020, The central bank will be rolling out an export-import facility to assist businesses with opportunities for competitive financing.

03B - Forbearance

No amount/estimate: May 2020, The government is encouraging commercial banks to grant a 3- to 6-month grace period for all loan repayments.

04 - Equity support info_outline

No amount/estimate: May 2020: (i) The government will use a fraction of the COVID-19 Bond on equity investments into Soltuna, Kolombangara Forest Products Limited, and Solomon Airlines; (ii) The stimulus package includes equity injections to government-owned companies.

05 - Health and income support SBD310,200,000 USD37,814,754
05A - Health support SBD1,200,000 USD146,285

(i) 6 May 2020, Part of the stimulus package provided by the government includes a USD10 million health grant to support health needs of the provincial health hospitals, clinics, and rural health centers (See package in Measure 5B6); No amount/estimate: (ii) 19 March 2021, Solomon Islands received 24,000 doses of AstraZeneca COVID-19 vaccines through the COVAX facility; (iii) 11 May 2021, Australia donated 60,000 doses of AstraZeneca manufactured from the Commonwealth Serum Laboratories [CSL] in Melbourne; On 18 May 2021, the vaccine was approved for roll out in Solomon Islands. 17 June 2021, a first batch of 13,000 doses arrived; (iv) 21 May 2021, Sinopharm vaccine was rolled out following the approval of WHO; (v) 27 May 2021, The People’s Republic of China has provided further assistance of USD0.15 million (approx. SBD1.2 million) toward the vaccination roll out and COVID-19 operations and logistics; No amount/estimate: (v) 2 June 2021, Solomon Islands received 28,800 doses of AstraZeneca vaccines from New Zealand through the COVAX facility. The shipment arrived on 19 June 2021; (vi) 29 June 2021, The Ministry of Health and Medical Services organized a two-week intensive COVID-19 vaccination training for 131 newly registered nurses; (vii) 7 July 2021, A total of 25,628 COVID-19 vaccine doses have been administered so far of which 5,987 have been fully vaccinated; (viii) 13 July 2021, With the imminent threat of the Delta variant, the government will implement a full rollout of vaccination in all provinces for all adults over 18 years of age; (ix) No amount/estimate: 29 August 2021, The Government of Japan has provided 56,000 doses of the Oxford-AstraZeneca COVID-19 vaccine to Solomon Islands via the COVAX Facility to strengthen vaccination rollout; (x) 13 September 2021, WHO handed over SBD1.2 million worth of supplies to support current COVID-19 preparedness and response including COVID-19 vaccination roll out and ongoing Tuberculosis program [update].

05B - Income support
05B1 - Tax and contribution deferrals and policy changes

No amount/estimate: 8 April 2020, The stimulus package is expected to include tax relief for specific sectors.

05B2 - Tax and contribution rates reduction
05B3 - Subsidies to individuals and households

No amount/estimate: April 2020: (i) The government has scaled down nonessential public services and will support affected public officers with one-off travel allowance; (ii) The government has not laid off any public servants, but instead required them to take leave on half pay; (iii) The National Provident Fund has made funds available to its members that are temporarily laid off or returned home; (iv) 8 April 2020, The stimulus package is expected to include (a) utility relief from Solomon Power and Ports Authority, (b) loan and interest relief from banks and financial institutions, and (c) ongoing payroll support for nonessential public servants; (v) 6 May 2020, The package includes employment support for youth and women; (vi) 15 June 2020, The cabinet revoked the decision on half pay for non-essential public servants that started on March 31. Any salary that was withheld will be repaid when officers are recalled to duty.

05B4 - Subsidies to businesses

No amount/estimate: April 2020: (i) Measures will likely include capital grants to businesses to support investment in productive and resource sectors, focusing on investments that add value to agricultural products and the fisheries, forestry, and tourism sectors, including through a new COVID-19 finance product to support agricultural ventures; (ii) It will also be used to finance specific investments and products of the Development Bank of Solomon Islands; (iii) 16 June 2020, The government provided price subsidies for copra and cocoa as part of the Economic Stimulus Package (ESP) to encourage local farmers to produce more and benefit from the subsidy scheme; (iv) 2 February 2021, The government, through its ESP initiative injected SBD1.2 million to restore life into an ailing noni local business registered as Solomon Noni Corporation to support its operations; (v) 16 February 2021, Last year, the Government injected SBD300,000 into Kokonut Pacific under its ESP. Today, the government signed another agreement for a subsidy of SBD150,000 to Kokonut Pacific to support the industry.

05B5 - Indirect income support

No amount/estimate: 6 May 2020, The package includes advancing planned infrastructure investments.

05B6 - No breakdown (income support)
05C - No breakdown (health and income support) SBD309,000,000 USD37,668,469

(i) 6 May 2020, The government has adopted a COVID-19 ESP of SBD309 million, to be financed by both government and donors. The package aims to provide social assistance to vulnerable households and firms, as well as supporting economic recovery; (ii) 26 May 2020, The Prime Minister made a statement that the stimulus package costs SBD319 million.

06 - Budget reallocation info_outline

25 April 2020, The government has reallocated SBD156 million in previously budgeted spending to fund the COVID-19 preparedness and response plan.

07 - Central bank financing government SBD60,000,000 USD7,314,266
07A - Direct lending and reserve drawdown
07B - Secondary purchase: government securities SBD60,000,000 USD7,314,266

(i) No amount/estimate: May 2020, The central bank is prepared to support the government's stimulus package with planned purchases of government bonds in the secondary market; (ii) 21 December 2020, CBSI purchased its first SIG Covid19 Bond valued at SBD60 million from the Solomon Islands National Provident Fund.

08 - International Assistance Received SBD733,697,634 USD89,440,992
08A - Swaps info_outline
08B - International loans/grants SBD733,697,634 USD89,440,992
08B1 - Asian Development Bank SBD291,539,856 USD35,540,000

(i) April 2020, USD1.99 million - TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases; (ii) 15 April 2020, USD0.02 million TASF - REG: Strengthening Social Protection in the Pacific; (iii) 22 April 2020, USD6 million (USD3 million COL; and USD3 million ADF) - REG: Pacific Disaster Resilience Program (Phase 2); (iv) 24 April 2020, USD0.13 million TASF - REG: Developing the Pacific Health Sector (Additional Financing); (v) 5 June 2020, USD0.14 million TASF - REG: Pacific Economic Management, Phase 3 (Additional Financing); (vi) 24 June 2020, USD20 million (USD10 million COL, USD10 million ADF) COVID-19 Rapid Response Program; (vii) No amount/estimate: 24 July 2020, USD0.04 million cofinanced amount under Strengthening Social Protection in the Pacific (Additional financing); (viii) 29 July 2020, USD1.5 million COVID-19 Emergency Response under the Asia Pacific Disaster Response Fund; (ix) 10 August 2020, USD0.25 million TASF - Knowledge and Support Technical Assistance for Strengthening Water, Sanitation, and Hygiene Practices and Hygiene Behavioral Change in the Pacific; (x) 12 August 2020, USD0.11 million TASF - Support for Gender Sensitive Responses to COVID-19 in the Pacific Developing Member Countries; (xi) 11 December 2020, USD5 million - Pacific Disaster Resilience Program (Phase 3) under ADF; (xii) 17 December 2020, USD0.3 million TASF - Supporting Recovery by Micro, Small and Medium-sized Enterprises in the Pacific from the Effects of the COVID-19 Pandemic; (xiii) 1 February 2021, USD23.88 million cofinanced amount under the COVID-19 Rapid Response Program; (xiv) 8 March 2021, USD0.10 million for Improving Pacific Public Financial Management Facility under the Asia Pacific Disaster Response Fund.

08B2 - Other SBD442,157,777 USD53,900,992

(i) 14 April - 13 Oct 2020: IMF Catastrophe Containment and Relief Trust-Grant Assistance For Debt Service Relief, SDR59,428 (SDR0.729/USD); (ii) April 2020, USD0.3 million UN COVID-19 Response & Recovery Fund from UNDP; (iii) 20 May 2020, Australia will provide USD100 million financial support to 10 Pacific countries and AUD13 million has been allocated for Solomon; On 11 December 2020, as part of Australia’s AUD13 million (SBD70 million) COVID-19 response package in Solomon Islands, every province has received a cash grant and resources including 4WD vehicles, boats, OBMs, computers and printers; (iv) 1 June 2020, IMF Executive Board approves a USD28.5 million disbursement to address the COVID-19 pandemic comprising SDR6.93 million (about USD9.5 million, 33.3% of quota) under the Rapid Credit Facility (RCF) and SDR13.87 million (about USD19 million, 66.7% of quota) under the Rapid Financing Instrument (RFI) to help cover urgent balance of payments needs stemming from the COVID-19 pandemic; (v) 6 August 2020, UNICEF Solomon Islands welcomes a USD0.347 million funding from the Government of Japan to boost ongoing COVID-19 preparedness efforts; (vi) 20 August 2020, The Government of Australia was pleased to provide SBD1 million (USD0.122 million) to the Ministry of Health and Medical Services for five new medical ventilators as part of its broader support to Solomon Islands’ COVID-19 preparedness and response; (vii) 25 August 2020, The Ministry of Agriculture and Livestock (MAL) through the Livelihood Sector Committee (LSC), signed two project funding agreements with the UN Food and Agricultural Organization for a total amount of USD0.999 million (approximately SBD8 million); (viii) 31 August 2020, The European Union and the Government of Solomon Islands have signed a new Financing Agreement, which will provide EUR8 million or nearly SBD78 million (USD9.5 million) to improve the efficiency of the response to the COVID-19 crisis, especially in the key sectors of health and education; (ix) 2 October 2020, IMF Catastrophe Containment and Relief Trust (2nd Tranche) - grant assistance for debt service relief, USD0.10 million; (x) 4 January 2021, USD5 million World Bank COVID-19 Emergency Response Project; (xi) No amount/estimate: 19 March 2021, Solomon Islands receive 24,000 doses of AstraZeneca COVID-19 vaccines through the COVAX facility; (xii) 5 April 2021, USD0.14 million IMF Catastrophe Containment and Relief Trust (3rd Tranche); (xiii) No amount/estimate: 11 May 2021, Australia donated 60,000 doses of AstraZeneca manufactured from the Commonwealth Serum Laboratories [CSL] in Melbourne; (xiv) 27 May 2021, The People’s Republic of China has provided further assistance of USD0.15 million (approx. SBD1.2 million) toward the vaccination roll out and COVID-19 operations and logistics; (xv) No amount/estimate: 2 June 2021, Solomon Islands received 28,800 doses of AstraZeneca vaccines from New Zealand through the COVAX facility. The shipment arrived on 19 June 2021; (xvi) 10 June 2021, New Zealand contributes additional economic support worth SBD10 million for the deployment of and roll out of the COVID-19 vaccination plan; (xvIi) As of 10 June 2021, Apart from COVID-19 vaccines, New Zealand has donated an X-ray machine, thousands of pieces of PPEs, hundreds of COVID-19 testing kits, support to obtain GeneXpert cartridges during period of global shortages, refurbishment of 5-bed isolation ward at NRH and budgetary support of NZD3 million for COVID-19 response; (xviii) 19 June 2021, New Zealand will provide NZD2 million (around SBD11 million) to support the government’s ongoing implementation of the COVID-19 vaccine deployment plan; (xix) 28 June 2021, Solomon Islands receive a fiscal relief package worth NZD6 million (SBD34 million) from the New Zealand Government in support of the ongoing recovery effort of the island; (xx) No amount/estimate: 29 August 2021, The Government of Japan has provided 56,000 doses of the Oxford-AstraZeneca COVID-19 vaccine to Solomon Islands via the COVAX Facility to strengthen vaccination rollout; (xix) 13 September 2021, WHO handed over SBD1.2 million worth of supplies to support current COVID-19 preparedness and response including COVID-19 vaccination roll out and ongoing Tuberculosis program [update].

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown
11 - Other Economic Measures

(i) 26 April 2020, The government issued its first COVID-19 domestic development bond of SBD120 million to finance its COVID-19 ESP; (ii) May 2020, To stimulate medium to long-term growth, the COVID-19 Bond will finance essential public services like health and education.

12 - Non-Economic Measures
12A - Measures affecting travel and transport (local and international)

April 2020: (i) The government has implemented measures to prevent the entry of COVID-19 including suspension of all international flights (except for those carrying essential COVID-19 related cargo), no entry of noncitizens, and strict mandatory quarantine for all returning passengers; (ii) In addition, the government has restricted travel of its citizens to the capital, Honiara; (iii) The Prime Minister has ordered the restriction of small craft vessels to and from the common border between Solomon Islands and Papua New Guinea; (iv) 11 May 2020, The national carrier, Solomon Airlines announced the suspension of all international flights until 15 July 2020; On 11 June 2020, it was extended until 31 August 2020; On 29 July 2020, the suspension was extended until 24 October 2020, but it will continue to operate government approved cargo and charter flights as needed; On 2 October 2020, the suspension of international flights was extended until 10 January 2021; On 30 November, international flights were suspended until 27 March 2021; On 11 February 2021, the suspension was extended until 30 October 2021; (v) 26 May 2020, after confirming its in-country COVID-19 testing capability, the government repatriated its stranded nationals from Australia, New Zealand, Vanuatu, and Fiji. More repatriation flights from these countries were scheduled on June (19 and 31) 2020 and July (1) 2020; On 13 July 2020, the government announced two more repatriation flights scheduled on 21 and 23 July 2020; On 3 October 2020, all scheduled repatriation flights have been put on hold with the confirmation of the first positive COVID-19 case; 24 November 2020, The next repatriation flight of nationals in New Zealand is scheduled on 6 December 2020; (vi) 5 November 2020, The government has extended the international border closures until 31 January 2021.

12B - Measures affecting business and workplace

April 2020: (i) The government has temporarily closed entertainment places; (ii) 8 May 2020, The Prime Minister made the order to reopen business entities except for night clubs within the emergency zone, Honiara; (iii) 13 October 2020, The Cabinet has approved immediate response measures under the current Emergency Regulations in light of the two confirmed cases of COVID-19 in the country. Meetings, seminars or conferences may continue; and nightclubs, casinos, public bars, and kava bars will remain open subject to the full observance of COVID-19 safety measures.

12C - Others

April 2020: (i) The government has scaled down public services to essential services only, closing schools (most resumed on 27 April 2020; exam classes in low-risk areas resumed on 18 May 2020) and temporarily suspended some services; (ii) 8 April 2020, The government announced an extension of the state of emergency for another 4 months ending on 24 July 2020; This was extended for another 4 months until 24-25 November 2020, The state of emergency was extended for another 4 months, which will end on 24 March 2021; The state of emergency was extended for another 7 days until 1 April 2021; (iii) 25 May 2020, All schools had reopened; (iv) 13 October 2020, The Cabinet has approved immediate response measures under the current Emergency Regulations in light of the two confirmed cases of COVID-19 in the country, with no immediate lockdown until further notice. These include suspension of early childhood classes within the Honiara City up to 16 October 2020, until further notice; approved sporting events, church services may continue; (v) 25 March 2021, The government is expected to pass a Public Health Emergency Bill in November that will allow it to make a declaration of a public health emergency in Solomon Islands. It is expected to replace the current State of Emergency which expired on 24 November 2020. 24 July 2021, the country declared its fifth consecutive state of public emergency (SOPE); (vi) 12 July 2021, The Ministry of Health and Medical Services (MHMS) advises citizens to fully adhere to COVID-19 measures it set in place. The MHMS also urges everyone to get vaccinated.