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||
No amount/estimate: June 24, The government announced a COVID-19 Special Credit Loan to provide loan to farmers to relieve the impact of the COVID-19 pandemic on the agricultural sector. Both paddy and crop farmers are eligible to apply for the special relief loan until September 2020 with an interest rate of 5% per annum.
|01B - Support policies for short-term lending info_outline||
No amount/estimate: (i) April, Deposit auctions have been halted to maintain adequate liquidity in the interbank market; (ii) April 9, the Central Bank of Myanmar (CBM) announced a temporary reduction in banks’ required reserve requirement ratio from 5% to 3.5% of deposits till September 30; (iii) April, It also announced a temporary revision to the formula for calculating the liquidity ratio, increasing the weight of government treasury bonds with a remaining maturity of more than one year from 50% to 90%, until September.
|01C - Forex operations info_outline||
No amount/estimate: April, The kyat has been allowed to adjust flexibly, with limited rules-based intervention to manage excessive exchange rate volatility.
|02 - Credit creation info_outline|
|02A - Financial sector lending/funding info_outline|
|02B - Support policies for long-term lending info_outline||
No amount/estimate: The CBM (i) cut the policy interest rate by 0.5 percentage points on March 12 and by 1 percentage point on March 24, and has announced a further 1.5 percentage points reduction to be effective May 1; and (ii) April 23, Announced the extension of the deadline for compliance to certain prudential regulations (enacted in July 2017) by three years from end-August 2020 to end-August 2023 to enable banks to support the economy cope with the impact of COVID-19; (iii) May, Deposit rates will be subject to a lower minimum rate of 6.5%, secured lending rates will be subject to a lower maximum of 11.5%, and unsecured lending will have a lower maximum rate of 14.5%.
|02C - Loan guarantees|
|03 - Direct long-term lending info_outline||MMK100,000,000,000||USD71,326,676|
|03A - Long-term lending info_outline||MMK100,000,000,000||USD71,326,676||
April, A COVID 19 Fund worth MMK100 billion (USD70 million, 0.1% of GDP) has been established at the Myanmar Economic Bank to provide soft loans to affected business (particularly the priority garment and tourism sectors and small and medium enterprises [SMEs]) at reduced interest rates.
|03B - Forbearance|
|04 - Equity support info_outline|
|05 - Government support to income/revenue||MMK38,300,000,000||USD27,318,117|
|05A - Health||MMK300,000,000||USD213,980||
(i) April, The allotment of MMK300 million (USD0.2 million) to the Ministry of Health and Sports for additional health-related expenditures; (ii) No amount/estimate: April, Waiver of the “specific goods tax,” customs duties, and commercial tax on “critical” medical supplies and products related to the prevention, control, and treatment of COVID-19.
|05B - Non-health||MMK38,000,000,000||USD27,104,137||
No amount/estimate: (i) April, Income and commercial tax payments due in the second and third quarters of the fiscal year have been made extendable to the end of the fiscal year, and an exemption for the 2% advance income tax on exports to the end of the fiscal year has been announced; (ii) Households without a regular income will be provided for with food during the upcoming long holidays; and electric bills, for up to 150 units, are exempt for most until the end of April; (iii) The Ministry of Hotels and Tourism announced that fee for renewal license of hotels and tourism businesses will be exempted for one year up to the end of March 2021; (iv) Starting April 20, the customs department has reduced duties for businesses operating with the Myanmar Automated Cargo Clearance System; (v) April, The Ministry of Labour, Immigration and Population will provide 40% of the social security fees for about 1.3 million insured workers from factories and workshops that are temporarily suspended for health inspections; (vi) April, The National Food Reserve has been allocated MMK38 billion.
|06 - Budget reallocation info_outline||
No amount/estimate: May, Up to 10% of FY 2019/20 initial budget expenditure (excluding those implemented by foreign loans and grants) of each ministry will be re-allocated to fight against COVID-19.
|07 - Central bank financing government|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||MMK2,303,640,220,000||USD1,643,110,000|
|08A - Swaps info_outline|
|08B - International loans/grants||MMK2,303,640,220,000||USD1,643,110,000|
|08B1 - Asian Development Bank||MMK364,534,020,000||USD260,010,000||
(i) January 29 and February 17, Greater Mekong Subregion Health Security Project (USD6.60 million); (ii) February 7, Strengthening Regional Health Cooperation in the Greater Mekong Subregion-Additional Financing (USD0.33 million); (iii) April 24, Policy Advice for COVID-19 Economic Recovery in Southeast Asia (USD0.5 million); (iv) April, Country Support under TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases (USD1.89 million); (v) July 24, Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3) (USD0.21 million); (vi) July 28, Transport Sector Reform and Modernization (Additional Financing) (USD0.27 million); (vii) August 10, Sustaining the Gains of the Regional Cooperation in the Greater Mekong Subregion (Additional Financing) (USD0.05 million); (viii) August 21, COVID-19 Active Response and Expenditure Support Program (USD250 million); (ix) September 1, Supporting Microfinance and Lending Partner Financial Institutions in their COVID-19 and Post-pandemic Response (USD0.16 million) [update].
|08B2 - Other||MMK1,939,106,200,000||USD1,383,100,000||
(i) May, The World Bank has approved a USD50 million credit for the Myanmar COVID-19 Emergency Response Project, as part of global emergency support operations through a dedicated fast-track COVID-19 facility (loan); (ii) May 29, The World Bank approved a (a) USD350 million credit from the International Development Association (IDA) to increase the output and efficiency of power generation and improve the resilience of Myanmar’s electricity system to climate change and disasters; and (b) USD110 million in additional financing for the Essential Health Services Access Project, implemented nationwide since 2015; (iii) June 26, USD200 million to boost agricultural productivity and support farmers in the wake of COVID-19; (iv) June 26, The IMF has approved USD356.5 million emergency assistance for Myanmar under the Rapid Credit Facility and the Rapid Financing Instrument to support the government’s COVID-19 Economic Relief Plan that aims at minimizing the pandemic’s impact by stimulating the economy and boosting expenditures especially on health and social safety nets; (v) July 21, The US Government is providing more than USD18.5 million to support Myanmar’s response to the COVID-19 pandemic, i.e. (a) approximately USD10.3 million for health and (b) USD8.2 million in disaster and humanitarian assistance, including to support vulnerable people and host communities during the pandemic; (vi) August 15, The Government of Japan provided medical equipment to Myanmar under a grant aid worth JPY2 billion (USD18.1); (vii) September 1, The Japan International Cooperation Agency (JICA) is providing JPY30 billion (approx. USD280 million) concessional loan to the Myanmar Government to support resilient economic recovery through implementation of COVID- 19 Economic Relief Plan (CERP) and related policies for investment/trade promotion and financial sector strengthening.
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown|
|11 - Other Economic Measures|
|12 - Non-Economic Measures||
(i) In response, the government has announced measures to limit the spread of the virus including travel restrictions (including quarantine requirements, suspension of visa issuances and international flights), closure of several land borders, and banning mass public gatherings are in place; (ii) Yangon and Mandalay will be under lockdown during the long holidays (April 10–19); (iii) Government employees have been instructed not to travel home and will be compensated for this period; (iv) A National Central Committee on Prevention, Control and Treatment of 2019 Novel Coronavirus has been established to coordinate the authorities’ response. A second committee, the Control and Emergency Response Committee on COVID-19, was setup on March 30 to help with stricter administrative measures to control the spread of the virus, including quarantine migrant workers coming from neighboring countries; (v) July 7, Myanmar government announced that it is opening for domestic travel, but incoming international travelers will not be allowed until the end of July; (vi) Restrictions on visa issuances and international passenger flights have been extended to July 31; (vii) September 2, The temporary ban on international commercial flights was extended to 30 September.