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||
April, The Government of Maldives will ensure, through banks, availability of working capital to businesses (Note that the amount is included in Measure 5.)
|01B - Support policies for short-term lending info_outline||
No amount/estimate: April, The Maldives Monetary Authority (MMA) announced measures including (i) reducing the Minimum Reserve Requirement (MRR) up to 5% as and when required; and (ii) making available a short-term credit facility to financial institutions as and when required. April 23, MRR was reduced to 7.5%.
|01C - Forex operations info_outline||
April, The MMA will increase foreign exchange intervention and use other available facilities to maintain the exchange rate peg.
|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|
|03B - Forbearance||
No amount/estimate: April, The Maldives Monetary Authority announced introducing regulatory measures to enable a moratorium of 6 months on loan repayments for those impacted by the current situation. Customers have to submit their requests to the banks in order to avail themselves of this moratorium.
|04 - Equity support info_outline|
|05 - Government support to income/revenue||MVR2,500,000,000||USD162,665,470||
March 20, To minimize the economic impact of the COVID–19 virus, the authorities announced an Economic Recovery Plan of MVR2.5 billion: (i) reduce the recurrent expenditure by MVR1 billion, (ii) increase the amount of funds allocated for the health sector, (iii) subsidize 40% of electricity bills and 30% of water bills for the months of April and May, (iv) provide special allowance to those who lose their jobs due to COVID-19; (v) arrange working capital for businesses through banks; (vi) defer principal and interest amount of loan repayments to Bank of Maldives (BML) by businesses and people who have been negatively impacted of COVID-19.
|05A - Health||
No amount/estimate: March 17, Temporary reduction of import tariffs on certain personal protective equipment like hand sanitizers, disinfectants, etc. Imports also exempted from processing fees
|05B - Non-health|
|06 - Budget reallocation info_outline|
|07 - Central bank financing government|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||MVR4,041,598,379||USD262,971,400|
|08A - Swaps info_outline||MVR2,305,344,828||USD150,000,000||
April, Obtained a foreign currency swap facility amounting to USD150 million under the currency swap agreement signed between the MMA and the Reserve Bank of India (RBI).
|08B - International loans/grants||MVR1,736,253,551||USD112,971,400|
|08B1 - Asian Development Bank||MVR26,588,310||USD1,730,000||
(i) March 25, USD0.5 million under the COVID-19 Emergency Response; (ii) April 30, USD0.65 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. This increased to USD0.80 million as of June 18 [update]; (iii) May 20, USD0.17 million under the Support to address Outbreak of Coronavirus Disease 2019 and Strengthen Health Systems Preparedness for Communicable Diseases in South Asia project; and (iv) June 1, USD0.01 million under Evidence-Based and Strategic Country Knowledge Support (Additional Financing).
|08B2 - Other||MVR1,709,665,241||USD111,241,400||
(i) April 2, The World Bank’s Board of Executive Directors approved a USD7.3 million Maldives COVID-19 Emergency Response and Health Systems Preparedness Project to help the country prevent, detect, and respond to the COVID-19 pandemic and strengthen its public health preparedness. In addition, a USD10 million contingency financing, under Disaster Risk Management Development Policy Financing with a Catastrophe Deferred Drawdown Option (CAT DDO), signed in 2019, has also been made available to support Maldives; (ii) April 22, The Executive Board of the International Monetary Fund approved the disbursement of SDR21.2 million (about USD28.9 million) to be drawn under the Rapid Credit Facility (RCF) to help cover balance of payments and fiscal needs, stemming from the COVID-19 pandemic; (iii) May 2, the Government of Japan provided an emergency grant of USD356,400 for UNICEF Maldives and USD185,000 for Maldives Red Crescent to assist the Government in its efforts to respond to COVID-19; (iv) May 20, The United States through the US Agency for International Development will provide USD2 million under Economic Support Fund (ESF) as technical assistance to the government to develop effective economic, fiscal, monetary measures in response to the COVID-19 pandemic; (v) May 21, The Government of Japan committed a grant of USD1.4 million to the UNDP Maldives that will support small and medium enterprises (SME’s) affected by COVID-19; (vi) The Islamic Development Bank (IsDB) provided USD20 million under the Emergency Response to COVID-19 Pandemic in Maldives that will strengthen the health system preparedness and response to COVID-19 pandemic by scaling-up one regional health facility capacity for case tracing and infection control and by improving the emergency health care quality, and will support in ensuring that at least 80% of confirmed COVID-19 cases admitted in project targeted ICU are treated as per the approved protocol, and will serve the targeted communities; (vii) June 7, the Government of Japan provides a grant aid of JPY600 million (worth USD5.6 million) to the Maldives. This grant aid will be utilized to procure medical equipment required to strengthen the capacities of health facilities in atolls/islands; (viii) June 9, The World Bank’s Board of Executive Directors approved a USD12.8 million COVID-19 Emergency Income Support Project to help Maldives mitigate the economic impact of the COVID-19 crisis on poor and vulnerable workers and their families; and June 15, The European Investment Bank (EIB) has signed a EUR20 million (approximately USD22.7 million) loan with the Ministry of Finance of the Republic of Maldives as a part of Team Europe action to help sustain the local economy, protect jobs and support SMEs operating in the tourism and industry sectors in the wake of the COVID-19 pandemic [update].
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown|
|11 - Other Economic Measures||
April, Reduce recurrent expenditure by MVR1 billion.
|12 - Non-Economic Measures||
(i) March 12, The government declared a Public Health Emergency. There are several adopted containment measures, including (a) temporary suspension of on-arrival visa for all passengers arriving to Maldives by air and sea, (b) quarantine for all passengers traveling to Maldives by air except for tourists checking-in to resorts, (c) screening at ports of entry, (d) restrictions on travel between resorts and inhabited islands, (e) ban on all cruise ships from entering and docking; requirement on all guest houses and city hotels operating in the Maldives to temporally suspend all tourist check-ins since March 17, and (f) school closures; (ii) April 15, The greater Malé region was placed on lockdown; (iii) May 13, The lockdown was extended to May 28 (third extension since its implementation); (iv) May 28: (a) The state of Public Health Emergency was extended until June 29; (b) Phase one of lockdown easing started, with a relaxation in temporary permissions for leaving homes as well as allowing certain commercial businesses to open and operate; and (c) International flights as well as tourism resorts are expected to reopen in July.