Pacific

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 599.02
% of GDP (2019): 10.80%
% of Regional Total Package: 23.43%
Package Per Capita in USD: 678.02
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 April 3 to ensure that adequate foreign reserves can be maintained. It reported foreign exchange reserves stood at FJD2,111.0 billion (7.7 months of retained imports) as of July 30, 2020.

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

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

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

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; No amount/estimate: Announced a concessional loans initiative for MSMEs impacted by COVID-19.

03B - Forbearance
04 - Equity support info_outline
05 - Government support to income/revenue FJD1,160,000,000 USD526,411,327

(i) March 26, 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; and effective March 2020, No amount/estimate: (ii) Temporary elimination of import excise duty (from 15%) on ethanol for production of hand sanitizers; (iii) Temporary elimination of import fiscal duties on certain products like glove, masks, disposable hair nets, hospital beds, etc.; (iv) Temporary elimination of the VAT on imports of certain products like vaccines, pharmaceutical products, etc.; (v) Temporary increase of the import fiscal duties (by 0.2/L on fuel (diesel and petrol); (vi) June 4, Government expanded its unemployment assistance; (vii) July 17, 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. The budget also entails a total of FJD100 million for unemployment assistance and a subsidy to Fiji Airways of FJD60 million to incentivize first 150,000 tourists in new fiscal year; (viii) As of September 11, 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. More details to follow. [update]

05A - Health
05B - Non-health
06 - Budget reallocation info_outline
07 - Central bank financing government FJD280,000,000 USD127,064,803
07A - Direct lending & 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 FJD475,842,960 USD215,938,900
08A - Swaps info_outline
08B - International loans/grants FJD475,842,960 USD215,938,900
08B1 - Asian Development Bank FJD224,789,236 USD102,010,000

(i) April 15, USD0.03 million announced by the ADB as part of the Strengthening Social Protection in the Pacific program. On July 24, additional USD0.05 million co-financing under the same program; (ii) April 24, 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; (iv) June 5, USD0.17 million in financing under the Pacific Economic Management, Phase 3 project; (v) July 15, 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) July 24, USD0.07 million under the regional project, Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3); (vii) August 10, 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) August 12, USD0.11 million under the regional project, Support for Gender Sensitive Responses to COVID-19 in the Pacific Developing Member Countries.

08B2 - Other FJD251,053,724 USD113,928,900

(i) May 20, AUD10.5 million in quick financial support from Australia to support Pacific countries hit by both the recent cyclone and pandemic; (ii) June 25, 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) July 15, USD50 million co-financing from the AIIB under the Sustained Private Sector-Led Growth Reform Program; (iv) No amount/estimate: August 19, 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) August 14, 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.

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

(i) The authorities have been proactive in their efforts to keep the virus out of Fiji by early imposition of travel restrictions; (ii) They 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; and (iii) 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; (iv) June 4, no new cases have been detected as of the past 30 days, and the last active case was cleared by authorities; (v) June 21, 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. The reopening of the economy under Phase 2 has been tied up with the launch of CareFIJI, a contact-tracing mobile application; (vi) July 16, The repatriation of Fijian citizens in July led to a resurgence of border cases – all quarantined in government-designated facilities.