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||
No amount/estimate: March 20, The Bank of Lao P.D.R. (BOL) announced a reduction in the reserve requirements, from 10% to 8% on foreign exchange, and from 5% to 4% on local currency, effective on April 2.
|01C - Forex operations info_outline||
No amount/estimate: April, The Lao People's Democratic Republic (Lao PDR) has a managed exchange rate (crawl-like arrangement). Under this arrangement, the exchange rate has depreciated. No new balance of payment or capital control measures have been adopted.
|02 - Credit creation info_outline|
|02A - Financial sector lending/funding info_outline|
|02B - Support policies for long-term lending info_outline||
No amount/estimate: (i) March 26, BOL issued a new credit policy for those impacted, asking banks and financial institutions to restructure loans and provide new loans to businesses affected by the outbreak. Under this policy, banks and financial institutions that implement debt restructuring and new loan provisions will benefit from regulatory forbearance on loan classification and provisioning; and (ii) March 30, BOL cut its policy rate from 4% to 3% for 1-week loans; from 5% to 4% for 1–2 week loans; and from 10% to 9% for 2-week to 1-year loans.
|02C - Loan guarantees|
|03 - Direct long-term lending info_outline|
|03A - Long-term lending info_outline|
|03B - Forbearance|
|04 - Equity support info_outline|
|05 - Government support to income/revenue||LAK92,000,000,000||USD10,342,280|
|05A - Health||LAK52,000,000,000||USD5,845,637||
April, LAK10 billion has been allocated for prevention and control. May, The amount allocated increased to LAK52 billion.
|05B - Non-health||LAK40,000,000,000||USD4,496,644||
No amount/estimate: April, Recent mitigation policies include (i) income tax exemption for both civil servants and employees of the private sector with income less than LAK5 million per month for 3 months, (ii) profit tax exemption for microenterprises with annual income between LAK50–LAK400 million for 3 months, (iii) duty fee exemption for imports of goods to be used toward the outbreak, (iv) deferring tax collection from tourism-related businesses for 3 months, (v) postponing mandatory contribution to social security by affected businesses for 3 months, and (vi) extending the submission of the 2019 financial report (annual tax filing) by 1 month and road tax payment by 3 months; and (vii) May, The government has agreed with an allowance of LAK500,000 per worker who currently participates in the Social Security Scheme. Of the 170,000 members, close to 80,000 will benefit from this scheme through June (Note that the estimated amount is LAK40 billion).
|06 - Budget reallocation info_outline|
|07 - Central bank financing government|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||LAK447,663,349,524||USD50,324,563|
|08A - Swaps info_outline|
|08B - International loans/grants||LAK447,663,349,524||USD50,324,563|
|08B1 - Asian Development Bank||LAK204,508,092,381||USD22,990,000||
(i) January 27, USD0.60 million under the Greater Mekong Subregion Health Security Project. As of June 8, the amount increased to USD0.86 million; (ii) February 7, USD0.34 million under the Strengthening Regional Health Cooperation in the Greater Mekong Subregion-Additional Financing; (iii) April 24, USD0.75 million under the Policy Advice for COVID-19 Economic Recovery in Southeast Asia project; (iv) May 17, USD1.03 million is the estimated support under the TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases; (v) May 22, USD20 million under the Greater Mekong Subregion Health Security Project (Additional Financing); and (vi) June 1, USD0.01 million under Evidence-Based and Strategic Country Knowledge Support (Additional Financing).
|08B2 - Other||LAK243,155,257,143||USD27,334,563||
(i) April 7, The World Bank’s Regional Vice-Presidency of the East Asia and Pacific Region approved USD18 million for the Lao PDR to help the country respond to the COVID-19 pandemic. The Lao PDR COVID-19 Response Project supports preparedness and emergency response activities, including infection prevention and control, case detection and contact tracing, case management and risk communication. It also supports the upgrade of surveillance capacity and the skills of health-care workers; (ii) May, USD1 million under the United Nations (UN) COVID-19 Response and Recovery Multi-Partner Trust Fund (COVID-19 MPTF); (iii) May 20, The United States through the US Agency for International Development will provide health assistance amounting to USD4.4 million; (iv) June 5, The Japanese government has provided grant aid worth over LAK123 billion (JPY1.5 billion) for the purchase of medical equipment to support Lao PDRs’ efforts to cope with a further outbreak of COVID-19. An Exchange of Notes for the grant aid project entitled “Economic and Social Development Progamme” was signed at the Ministry of Foreign Affairs in Vientiane.
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown||
No amount/estimate: (i) April, A proposed 13-measure economic stimulus package has been endorsed by the cabinet. Measures include establishing a separate task force to address the economic impact of COVID-19; and (ii) May, A new electricity tariff, to ensure supply of electricity, in effect from May 1, 2020 through December 31, 2025, has been approved. Extra efforts to ensure revenue collections through automated platforms and inspections targeting at stockpiling of essential goods are being considered.
|11 - Other Economic Measures||
(i) April, Cuts in administrative expenses by at least 10% of annual budget have been approved and intentions to cut unnecessary spending in proportion to revenue shortfall have been signaled; (ii) The Taskforce Committee has launched a fundraising campaign from the public (as of June 1, about LAK17.5 billion in cash and LAK85.5 billion in kind have been raised.
|12 - Non-Economic Measures||
(i) April: (a) Border checkpoints, schools, and entertainment venues remain closed; (b) Price control of essential goods is still in place; and (c) The Taskforce Committee for COVID-19 Epidemic Prevention, Control and Response is monitoring latest developments and coordinates the authorities’ response. A separate Taskforce Committee and its seven working groups are in place to address the economic impact of the crisis; (ii) May 4: (a) A nationwide lockdown has been partially lifted. The new loosened measures allow the reopening of public offices and some private sector businesses and is expected to last until May 17; (b) Restaurants, hotels, resorts, guesthouses, coffee shops, barbershops, beauty salons as well as wholesale and retail outlets can resume their businesses, however, large-scale manufacturing plants and investment projects with large number of employees must abide by strict preventative measures introduced by the National Taskforce; and (c) Travel and public transport within each province are now permitted but inter-provincial travel and public transport including air transport and large gatherings are still suspended and banned; (iii) May 18: (a) The new loosened measures allow public offices and businesses to resume and are expected to last until June 1; (b) Restaurants, food vendors, retail and wholesale outlets, fresh markets, supermarkets, personal care services as well as development projects, companies and factories are also permitted to resume operations, but must abide by strict preventative measures introduced by the National Taskforce; (c) In country travel and public transport are now permitted; (d) Some classes at primary, lower and upper secondary schools can resume on May 18 while all others are slated to open on June 2; (e) All indoor and outdoor sporting activities are now permitted; (f) Border checkpoints, night markets, and entertainment venues remain closed; (g) Price control of essential goods is still in place.