South Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 431
% of GDP (2019): 16.60%
% of Regional Total Package: 0.12%
Package Per Capita in USD: 570.78
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: April, Provision of working capital at 5% interest for wholesale distributors authorized by the Ministry of Economic Affairs (MoEA) for a period of 3 months, extendable by 3 months to enable them to procure adequate stocks and ensure uninterrupted supply of essential items at reasonable price.

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

No amount/estimate: April, Loans to cottage and small industries through the National Cottage and Small Industries (CSI) Development Bank (microloans at 2% concessional interest for agriculture and rural activities and working capital loans at 4% concessional interest rate for 3 months).

03B - Forbearance

No amount/estimate: April, Deferment of loans for 3 months (April–June) (i) for all borrowers who had maintained their loan accounts in good standing, i.e., loans that were not non-performing loans (NPL) as of February 29; (ii) May, The RMA announced that the interest waiver facility would also be extended to non-performing loan accounts. The government will finance 50% of the total interest payment and the financial institutions offered to support the other 50%.

04 - Equity support info_outline
05 - Government support to income/revenue BTN/INR32,000,000,000 USD430,592,553
05A - Health BTN/INR2,000,000,000 USD26,912,035

April, An additional resource of BTN2 billion will be provided to the Ministry of Health to meet health-related spending.

05B - Non-health BTN/INR30,000,000,000 USD403,680,518

April, The National Resilience Fund has been approved and established. With a fund size amounting to about BTN30 billion, the resources will support the implementation of the following activities: (i) Grant of the Druk Gyalpo’s Relief Kidu to people who have been laid off or placed on reduced salaries to provide them immediate financial support. April 30, The Druk Gyalpo's Relief Kidu has granted BTN150 million as the first disbursement of the Relief Kidu to 13,006 people; (ii) Interest waiver (50% of cost) - effective May 1, the Royal Monetary Authority announced that the interest waiver would also be extended to non-performing loan accounts for a period of three months (April–June). The government will finance 50% of the total interest payment and the financial institutions offered to support the other 50%. On June 11, The government handed over the e-fund payment to financial service providers for loan interest waiver for the month of April. The government is financing 50% of the interest waiver amounting to BTN625.96 million (Total amount of the interest waiver for April stands at BTN1.2 billion) [update]; (iii) Fast-track the implementation of the 12th Five Year Plan and wherever possible frontload the investments; (iv) Business income tax (BIT) and corporate income tax (CIT) filing and tax payment for the income year 2019 will be deferred until June 30; (v) Deferred payment of sales tax and customs duty on essential items (March–June); (vi) Waiver of payment of rent and other charges (April–June) by tourism-related business entities leasing government properties; (vii) May 25, The government will be refunding the 5% sales tax collected on telecom services collected on or after January 16, 2020.

06 - Budget reallocation info_outline BTN/INR1,300,000,000 USD17,492,822

April, A budget of BTN1.3 billion has been re-appropriated for health, essential food and fuel, quarantine and related initiatives.

07 - Central bank financing government
07A - Direct lending & reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received BTN/INR3,433,779,778 USD46,205,000
08A - Swaps info_outline
08B - International loans/grants BTN/INR3,433,779,778 USD46,205,000
08B1 - Asian Development Bank BTN/INR1,589,623,405 USD21,390,000

(i) April, Country Support under TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases (USD1.17 million); (ii) April, Regional Project Development Support for the South Asia Subregional Economic Cooperation Operational Plan, 2016–2025 (USD0.05 million); (iii) May 4, COVID-19 Active Response and Expenditure Support Program (USD20 million); (iv) May 20, Support to address Outbreak of Coronavirus Disease 2019 and Strengthen Health Systems Preparedness for Communicable Diseases in South Asia (USD0.17 million).

08B2 - Other BTN/INR1,844,156,372 USD24,815,000

(i) World Food Program donated two mobile storage units to help authorities preposition food to meet the needs of half the population for three months. The storage units has a capacity of 500 metric ton each and worth a total of USD45,000 (grant); (ii) April 27, the government and the World Bank signed a fast-track USD5 million COVID-19 project to help Bhutan prevent, detect, and respond to the pandemic and strengthen its public health preparedness (loan); (iii) May 20, The Royal Government of Bhutan and the World Bank signed a USD14.8 million Development Policy Financing with Catastrophe Deferred Drawdown Option (Cat DDO) to help Bhutan undertake a comprehensive set of reforms to manage climate and disasters risks, including disease outbreaks (loan); (iv) May, USAID provided USD1 million in total assistance for COVID-19 response, of which (a) USD500,000 in ESF to support micro, small and medium-sized enterprises to generate income for those affected by COVID-19; (b) USD500,000 in health assistance to strengthen diagnostic laboratory capabilities and clinical case-management, provide virtual training for health care providers and lab personnel, and design and produce risk-communications materials (grant); (v) May 28, United Nations (UN) COVID-19 Response and Recovery Fund, a UN inter-agency fund mechanism established by the UN Secretary-General to help support low and middle income program countries to respond to the pandemic and its impacts including an unprecedented socioeconomic shock, has allocated USD300,000 to Bhutan (grant); (vi) June 15, UN in Bhutan committed USD1.17 million to support the Royal Government of Bhutan in addressing issues related to the COVID-19 pandemic. A part of the commitment comes from the Secretary General’s UN COVID-19 Response and Recovery Fund, with the aim to support responses to COVID-19 (see item v) and part of it is from the Joint Sustainable Development Goals (SDG) Fund, which will cover activities that will accelerate progress toward achieving the SDGs [update]; (vii) June 23, The Government of Japan will provide a grant of JPY300 million (around USD2.8 million) to procure medical equipment to strengthen public health and medical systems in Bhutan [update].

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

(i) Office of Consumer Protection has published market price information of essential commodities as of March 11, to monitor and keep track of price movement in the market and provide information to consumers for informed purchase decision; (ii) March 24, A ban on select food product (e.g., betel leaf, betel nut) import from India has been imposed to curb the spread of COVID-19.

12 - Non-Economic Measures

(i) Bhutan started imposing containment measures immediately after the first case was recorded on March 6, with restriction of entry of foreign tourists initially for two weeks but extended afterwards and closure of schools in three cities; (ii) March 22, Bhutan sealed off its land borders as a precautionary measure to prevent the spread of COVID-19. For non-Bhutanese, exits are allowed. Incoming non-Bhutanese are scrutinized and quarantined where applicable; (iii) March 27, More containment measures were imposed on public gatherings, travel (within and outside Bhutan), business and entertainment, games and sports and civil service, corporate, private, and other agencies. The quarantine period has been extended to April 21; (iv) Healthcare measures include setting up dedicated hospitals and quarantine centers.