Pacific

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 622.12
% of GDP (2019): 11.21%
% of Regional Total Package: 23.90%
Package Per Capita in USD: 699.05
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
01C - Forex operations info_outline

The Reserve Bank of Fiji tightened exchange controls on 3 April 2020 to ensure that adequate foreign reserves can be maintained. It reported foreign exchange reserves stood at FJD2,111.0 million (7.7 months of retained imports) as of 30 July 2020. As of 31 August 2020, reserves stood at FJD2,371.0 million (8.7 months of retained imports). Additionally, as of late January 2021, reserves stood at FJD2,178.0 million (7.8 months of retained imports). As of late February 2021, reserves stood at FJD2,187.0 million. [update]

02 - Credit creation info_outline FJD60,000,000 USD27,228,172
02A - Financial sector lending/funding info_outline FJD60,000,000 USD27,228,172

The Reserve Bank of Fiji raised its Natural Disaster and Rehabilitation Facility to FJD60 million to include businesses affected by epidemics or pandemics, renaming it the Disaster Rehabilitation and Containment Facility.

02B - Support policies for long-term lending info_outline
02B1 - Interest rate adjustments

No amount/estimate: The Reserve Bank of Fiji reduced the overnight policy rate to 0.25% from 0.5% on 18 March 2020 to counter the economic impact of COVID-19.

02B2 - Other policies to support long-term lending
02C - Loan guarantees

No amount/estimate: The Reserve Bank of Fiji expanded the SME Credit Guarantee Scheme to assist small entities.

03 - Direct long-term lending info_outline FJD100,000,000 USD45,380,287
03A - Long-term lending info_outline FJD100,000,000 USD45,380,287

(i) The Reserve Bank of Fiji raised its Import Substitution and Export Finance Facility by FJD100 million to provide credit to exporters, large scale commercial agricultural farmers, public transportation and renewable energy businesses at concessional rates; (ii) As of 4 October 2020, The previously announced concessional loans initiative for MSMEs impacted by COVID-19 have totalled FJD22.5 million in approvals.

03B - Forbearance
04 - Equity support info_outline
05 - Health and income support FJD1,210,900,000 USD549,509,893
05A - Health support

Effective March 2020, No amount/estimate: (i) Temporary elimination of import excise duty (from 15%) on ethanol for production of hand sanitizers; (ii) Temporary elimination of import fiscal duties on certain products like glove, masks, disposable hair nets, hospital beds, etc.; (iii) Temporary elimination of the VAT on imports of certain products like vaccines, pharmaceutical products, etc.;

05B - Income support FJD210,900,000 USD95,707,025
05B1 - Tax and contribution deferrals and policy changes
05B2 - Tax and contribution rates reduction

(i) No amount/estimate: Temporary increase of the import fiscal duties (by 0.2/L on fuel (diesel and petrol) effective March 2020; (ii) 17 July 2020, a second fiscal package was announced as part of the FY2020-21 budget for the fiscal year beginning in August, consisting of sizeable tax and tariff cuts. Other measures of this package can be found in 5B3 and 5B4.

05B3 - Subsidies to individuals and households FJD100,000,000 USD45,380,287

(i) 4 June 2020, The Government expanded its unemployment assistance; (ii) 17 July 2020, The aforementioned budget in 5B2 also entails a total of FJD100 million for unemployment assistance; (iii) As of 11 September 2020, the Permanent Secretary for Poverty Alleviation of the Ministry of Women, Children and Poverty Alleviation is working to avail funds to help additional number of Fijians requiring social welfare assistance after the effects of COVID-19; (iv) 5 October 2020, regarding the 26 March 2020 supplementary budget, the Government reassured workers from parts of the economy (such as tourism) that have since opened up that they can report for work and receive aid on top of their salaries; (v) As of 8 October 2020, Authorities also announced a new hiring subsidy program under which the government will pay the minimum wage of FJD2.68 per hour and the remainder will be paid by the employers.

05B4 - Subsidies to businesses FJD110,900,000 USD50,326,738

(i) 17 July 2020, The aforementioned budget in 5B2 also entails a subsidy to Fiji Airways of FJD60 million to incentivize first 150,000 tourists in new fiscal year; (ii) As of 1 October 2020, The Government has introduced several additional allocations amounting FJD50.9 million for the development of the sugar sector.

05B5 - Indirect income support
05B6 - No breakdown (income support)
05C - No breakdown (health and income support) FJD1,000,000,000 USD453,802,868

(i) 26 March 2020, A supplementary budget (FJD1 billion) was announced in response to the COVID-19 pandemic. Supplemental expenditures on public health, lump sum payments through the Fiji National Provident Fund (FNPF), tax and tariff reductions, and loan repayment holidays aimed at protecting public health, supporting the economy, and ensuring food security. An Agricultural Response Package to ensure food security has also been announced. It includes the scaling up of the existing Home Gardening program and a new Farm Support Package which aims at boosting the production of short-term crops through seeds and materials distribution.

06 - Budget reallocation info_outline
07 - Central bank financing government FJD280,000,000 USD127,064,803
07A - Direct lending and reserve drawdown
07B - Secondary purchase: government securities FJD280,000,000 USD127,064,803

As of July 30, The Reserve Bank of Fiji has purchased FJD280 million of Government bonds to help finance the Government deficit.

08 - International Assistance Received FJD880,447,220 USD399,549,474
08A - Swaps info_outline
08B - International loans/grants FJD880,447,220 USD399,549,474
08B1 - Asian Development Bank FJD319,213,496 USD144,860,000

(i) 15 April 2020, USD0.03 million announced by the ADB as part of the Strengthening Social Protection in the Pacific program. On 24 July 2020, additional USD0.05 million co-financing under the same program; (ii) 24 April 2020, USD0.11 million allocated by the ADB as additional funding to Fiji under the Regional Project on Developing the Pacific Health Sector; (iii) USD1.20 million under the TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases. As of 30 January 2021, this has now been increased to USD1.70 million; (iv) 5 June 2020, USD0.17 million in financing under the Pacific Economic Management, Phase 3 project; (v) 15 July 2020, USD100 million funding from the ADB under the Sustained Private Sector-Led Growth Reform Program, with another USD50 million of co-financing from the AIIB; (vi) 24 July 2020, USD0.07 million under the regional project, Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3); (vii) 10 August 2020, USD0.32 million under the regional project, Knowledge and Support Technical Assistance for Strengthening Water, Sanitation, and Hygiene Practices and Hygiene Behavioral Change in the Pacific; (viii) 12 August 2020, USD0.11 million under the regional project, Support for Gender Sensitive Responses to COVID-19 in the Pacific Developing Member Countries; (ix) 2 October 2020, USD2 million under the COVID-19 Emergency Response Project; (x) 17 December 2020, USD0.35 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; (xi) 12 March 2021, USD40 million through the Fiji Airways COVID-19 Emergency Liquidity Support Facility [update].

08B2 - Other FJD561,233,724 USD254,689,474

(i) 20 May 2020, AUD10.5 million in quick financial support from Australia to support Pacific countries hit by both the recent cyclone and pandemic; (ii) 25 June 2020, USD7.4 million in funding from the World Bank to further support the Government of Fiji in strengthening its health systems in the wake of the COVID-19 emergency; (iii) 15 July 2020, USD50 million co-financing from the AIIB under the Sustained Private Sector-Led Growth Reform Program; (iv) No amount/estimate: 19 August 2020, The US Government, through the US Agency for International Development (USAID), has donated 50 brand-new, state-of-the-art ventilators to Fiji, Kiribati, and Nauru to assist their fight against COVID-19; (v) 14 August 2020, The AIIB approved a USD50 million loan to support the government’s efforts to provide assistance to the formal sector, including small and medium enterprises and their employees, and members of the informal sector; (vi) 9 February 2021, The World Bank provided a USD50 million boost to support Fiji’s recovery from the impacts of COVID-19 and severe tropical cyclones Harold and Yasa. The project, Fiji’s Social Protection System to Address Employment Impacts of COVID-19, has a special focus on women who have been disproportionally affected by the crisis; (vii) 1 March 2021, UNICEF, together with the Asian Development Bank (ADB), handed over 22,000 Cepheid GeneXpert test kits to the Fijian Ministry of Health and Medical Services to strengthen the country’s COVID-19 prevention activities; (vii) Late February 2021, the Japanese government provided an emergency loan of FJD200 million to strengthen its public health system against the pandemic [update]; (viii) 6 March 2021, Fiji became the first country in the Pacific islands to receive COVID-19 vaccine doses shipped via the COVAX Facility, with a shipment of 12,000 doses of Oxford-AstraZeneca. [update]

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

(i) 16 October 2020, The Fijian Government and the United States signed Trade and Investment Framework Agreement (TIFA), first of its kind with the United States to promote trade and investment ties between the two countries; (ii) 25 November 2020, Tourism Fiji held the first ever virtual Fijian Tourism Expo (FTE) to promote tourism and business activities in the country. The Expo is aimed at bringing together potential investors from Australia, New Zealand and leading industrialists in Fiji.

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

(i) The authorities have been proactive in their efforts to keep the virus out of Fiji by early imposition of travel restrictions; (ii) Nationwide curfew and lockdowns have also been put into place.

12B - Measures affecting business and workplace

(i) Closing of certain types of businesses were implemented at the height of the COVID-19 pandemic.

12C - Others

(i) The Government reacted to the first confirmed case with a broad set of measures, including reinforced detection measures, restrictions on movements and gatherings, closures of schools and certain types of businesses (e.g. cinemas, gyms, etc.), a nationwide curfew and lockdowns of affected areas; (ii) As the number of cases have remained constant since Mid-April, the authorities started relaxing containment and mitigation restrictions at the national level on April 26th; (iii) 4 June 2020, no new cases have been detected as of the past 30 days, and the last active case was cleared by authorities; (iv) 21 June 2020, Phase 2 of Fiji’s COVID-safe Economic Recovery Plan leads to the gradual easing of some restrictions (e.g. national curfew, limitations on public gatherings) and the reopening of schools and certain recreational facilities under strict conditions; (v) The reopening of the economy under Phase 2 has been tied up with the launch of CareFIJI, a contact-tracing mobile application; (vi) 16 July 2020, The repatriation of Fijian citizens in July led to a resurgence of border cases – all quarantined in government-designated facilities; (vii) 13 January 2021, Tourism Fiji announced that it has created the “Care Fiji Commitment,” a program featuring enhanced safety, health and hygiene protocols for a post-pandemic world as it prepares to reopen borders to travelers sometime in the future.