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Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 21,666.44
% of GDP (2019): 11.75%
% of Regional Total Package: N/A
Package Per Capita in USD: 4,406.44
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

No amount/estimate: April 2020: The Reserve Bank of New Zealand (RBNZ) (i) announced a corporate facility that will offer up to NZD500 million per week in open market operations with banks against corporate paper and asset-backed securities for 3 months; and (ii) established a new Term Auction Facility (TAF), which allows banks access to collateralized loans of up to 12 months. On 10 March 2021, RBNZ announced that it will be removing the corporate facility (see item i) and TAF (see item ii), citing that financial market conditions have improved significantly since March 2020 when these facilities were introduced and the usage of these special facilities has been very low in the last six months. The final tenders for both facilities will be held on 16 March 2021. [update].

01B - Support policies for short-term lending info_outline
01C - Forex operations info_outline

No amount/estimate: April 2020, The exchange rate has been allowed to adjust flexibly.

02 - Credit creation info_outline NZD9,250,000,000 USD5,594,532,479
02A - Financial sector lending/funding info_outline NZD3,000,000,000 USD1,814,442,966

(i) No amount/estimate: April 2020, The RBNZ is introducing a Term Lending Facility (TLF), a longer-term funding scheme for banks at low interest rates for up to 3 years duration. 4 May 2020, Further details have been announced, i.e., under the facility, RBNZ will offer to lend funds to banks at the official cash rate of 0.25%, and will be available to use for six months, starting from 26 May 2020 and ending on 29 October 2020. On 20 August 2020, RBNZ announced that the term has been extended to five years from three years; (ii) 7 April 2020, The RBNZ announced that it has added NZD3 billion (equivalent to 30% on issue) of Local Government Funding Agency (LGFA) debt to the Large-Scale Asset Program (LSAP) (See Measure 10 notes: No breakdown).

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

No amount/estimate: 27 March 2020, RBNZ cut the official cash rate (OCR) by 75 basis points to 0.25% (at least 12 months). On 24 February 2021, the RBNZ announced that it will keep the OCR ar 0.25%.

02B2 - Other policies to support long-term lending

No amount/estimate: (i) 27 March 2020, RBNZ reduced bank’s core funding ratio requirement to 50% from 75% to help banks make credit available; (ii) March 2020, The implementation date of regulatory reform requiring higher capital for banks has been postponed to July 2021; (iii) March 2020, Other regulatory initiatives are also put on hold; (iv) March 2020, RBNZ announced that there will be no dividend payments on ordinary shares and redemption of non-CET1 capital instruments; (v) 30 April 2020, RBNZ has removed loan-to-value ratio (LVR) restrictions on housing loans for 1 year (until May 2021). 9 February 2021, The Reserve Bank will be reinstating LVR restrictions at the same level they were set at prior to the onset of COVID-19, with a further tightening of investors’ restrictions taking effect on 1 May, i.e., (a) starting 1 March 2021, LVR restrictions for owner-occupiers will be reinstated to a maximum of 20% of new lending at LVRs above 80%. LVR restrictions for investors will be reinstated to a maximum of 5% of new lending at LVRs above 70%; (b) starting 1 May 2021, LVR restrictions for owner-occupiers will remain at a maximum of 20% of new lending at LVRs above 80%. LVR restrictions for investors will be further raised to a maximum of 5% of new lending at LVRs above 60%.

02C - Loan guarantees NZD6,250,000,000 USD3,780,089,513

April 2020, NZD6.25 billion business finance guarantee scheme for small and medium enterprises (SME) loans, in which the government covers 80% of the credit risk.

03 - Direct long-term lending info_outline NZD900,000,000 USD544,332,890
03A - Long-term lending info_outline NZD900,000,000 USD544,332,890

(i) April 2020, NZD0.9 billion debt funding agreement (convertible to equity) with Air New Zealand to ensure continued freight operations, domestic flights, and limited international flights; (ii) No amount/estimate: May 2020, The New Zealand government provides loans of up to NZD100,000 to small businesses that employ 50 or less employees.

03B - Forbearance

No amount/estimate: April 2020: (i) NZL government, RBNZ, and the New Zealand Bankers Association announced a six-month principal and interest repayment deferrals to mortgage holders and SMEs affected by COVID-19; (ii) The government has also committed to a temporary law change to enable businesses to put existing debt into hibernation for 6 months; (iii) 17 August 2020, RBNZ announced an extension of the regulatory guidance for the mortgage deferrals program. The extension will apply until 31 March 2021, at which point the usual treatment will resume. Banks will still be able to offer deferrals to borrowers after this date, but they will not have the same concessionary regulatory treatment.

04 - Equity support info_outline
05 - Health and income support NZD25,666,300,000 USD15,523,345,833
05A - Health support NZD566,300,000 USD342,506,351

(i) April 2020, NZD0.5 billion for healthcare-related spending to reinforce capacity; (ii) No amount/estimate: 28 March 2020, The government announced the temporary removal of tariffs on all medical and hygiene imports needed for the COVID-19 response; (iii) 10 November 2020, The New Zealand Government agreed to buy Pfizer BioNTech product to vaccinate 750,000 people. The government has set aside NZD66.3 million for medical supplies and infrastructure to ensure New Zealand is ready to launch a COVID-19 Immunisation Programme as soon as a safe and effective vaccine is available; (iv) No amount/estimate: 19 November 2020, The Government has made an in-principle agreement with Janssen Pharmaceutica to buy up to 5 million COVID-19 vaccine doses; (v) No amount/estimate: 9 March 2021, New Zealand’s first large-scale COVID-19 vaccination clinic has opened to start vaccination of border workers’ household contacts [update]; (vi) 10 March 2021, The Government has announced its plan for the rollout of the COVID-19 vaccines, i.e., in the next 3-4 months, it will start to reach 2 million people in most at risk groups [update].

05B - Income support NZD25,100,000,000 USD15,180,839,482
05B1 - Tax and contribution deferrals and policy changes NZD3,100,000,000 USD1,874,924,398

April 2020, NZD3.1 billion allocation as temporary tax loss carry-back scheme over the next 2 years.

05B2 - Tax and contribution rates reduction NZD2,800,000,000 USD1,693,480,102

April 2020, NZD2.8 billion of permanent change in business taxes to help cashflow over the next 4 years.

05B3 - Subsidies to individuals and households NZD2,400,000,000 USD1,451,554,373

April 2020: (i) Total NZD2.4 billion as permanent increase in social spending to protect vulnerable people over the next 4 years;(ii) No amount/measure: 6-month freeze on residential rent increases and increased protection of tenants for termination of tenancies.

05B4 - Subsidies to businesses NZD16,800,000,000 USD10,160,880,610

April 2020: (i) NZD13 billion, a lumpsum 12-week wage subsidy to support employers severely affected by the impact of COVID-19. 14 May 2020, the government announced additional funding of up to NZD3.2 billion in Budget 2020 for a targeted extension of the wage subsidy. The targeted extension provides for a further 8 weeks of payments after the program ends on 9 June 2020; (ii) NZD0.6 billion support for the aviation sector.

05B5 - Indirect income support
05B6 - No breakdown (income support)
05C - No breakdown (health and income support)
06 - Budget reallocation info_outline
07 - Central bank financing government NZD10,000,000,000 USD6,048,143,220
07A - Direct lending and reserve drawdown NZD10,000,000,000 USD6,048,143,220

May 2020, The RBNZ has doubled the overdraft on the crown settlement account to NZD10 billion for April–June 2020 to meet the government's short-term cash needs.

07B - Secondary purchase: government securities

April 2020, The RBNZ has been implementing LSAP to purchase government bonds in the secondary market up to NZD30 billion across a range of maturities. 13 May 2020, The Monetary Policy Committee has agreed to significantly expand the LSAP programme to NZD60 billion. 12 August 2020, LSAP programme was expanded to NZD100 billion. 23 September 2020 and 24 February 2021, RBNZ announced that the expanded LSAP program will continue until further notice (See amount in Measure 10 notes: No breakdown).

08 - International Assistance Received NZD49,602,000,000 USD30,000,000,000
08A - Swaps info_outline NZD49,602,000,000 USD30,000,000,000

April 2020, The RBNZ has been providing liquidity in the foreign exchange swap market and reestablished a temporary United States (US) dollar swap line (USD30 billion) with the US Federal Reserve.

08B - International loans/grants
08B1 - Asian Development Bank
08B2 - Other
09 - International Assistance Provided NZD7,000,000 USD4,233,700
09A - Swaps info_outline
09B - International loans/grants NZD7,000,000 USD4,233,700

19 May 2020, The New Zealand Government is contributing NZD7 million to help some of the world’s most vulnerable people who are at severe risk of COVID-19. The funding is going towards the United Nations-led Global Humanitarian Response Plan (GHRP) for COVID-19.

10 - No breakdown

April 2020, The RBNZ has been implementing a Large-Scale Asset Program (LSAP) to purchase government bonds in the secondary market up to NZD30 billion across a range of maturities. 7 April 2020, The RBNZ announced that it has added NZD3 billion (equivalent to 30% on issue) of Local Government Funding Agency (LGFA) debt to the LSAP, taking the total size of the LSAP to NZD33 billion over 12 months. 13 May 2020, The Monetary Policy Committee has agreed to significantly expand the LSAP programme to NZD60 billion, up from the previous NZD33 billion limit. 12 August 2020, LSAP programme was expanded to NZD100 billion (See Measures 2A and 7B).

11 - Other Economic Measures

28 March 2020, The government announced the temporary removal of tariffs on all medical and hygiene imports needed for the COVID-19 response.

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

April 2020: (i) Cancellation of discretionary domestic air travel; (ii) Closing of the borders to all but New Zealand citizens, who must self-isolate for at least 14 days upon entry; (iii) 9 June 2020, The government announced that New Zealand has moved to Alert Level 1 starting 8 June 2020, where everyone can return without restriction to work, school, sports, and domestic travel, and can get together with as many people. Controls at the borders remain for those entering New Zealand, including health screening and testing for all arrivals, and mandatory 14-day managed quarantine or isolation; (iv) 12 January 2021, All travellers, including anyone exempted from the pre-departure testing requirement, are still required to complete the 14 days mandatory isolation; (v) 12 January 2021, Beginning 11.59 pm on Friday 15 January 2021, travellers arriving on all flights from the UK and US must have had a negative test result for COVID-19 in the 72 hours before their departure; (vi) 12 January 2021, Passengers from any destination, excluding Australia, Antarctica, and some Pacific Islands, will be required to undergo Day 0/1 testing upon arrival in New Zealand [update]; (vii) 15 January 2021, Travellers from the Cook Islands can resume quarantine-free travel into New Zealand from 21 January, enabling access to essential services such as health; (viii) 13 March 2021, Passengers from Niue can resume quarantine-free travel into New Zealand on Wednesday 24 March 2021 NZT (Tuesday 23 March 2021 Niue time) [update].

12B - Measures affecting business and workplace

April 2020: (i) Social distancing measures and closure of all non-essential businesses, cancellation of all events and gatherings, closure of schools. (ii) The government announced that New Zealand will move to Alert Level 3 starting 27 April 2020, 11:59pm, allowing many businesses to re-open, though without physical contact to customers, and schools to re-open with limited capacity; (iii) 14 May 2020, New Zealand moved to Alert Level 2; (iv) 9 June 2020, The government announced that New Zealand has moved to Alert Level 1 starting 8 June 2020, where everyone can return without restriction to work, school, sports, and can get together with as many people. (v) 24 August 2020, Due to new confirmed cases, the government announced that Auckland will stay at Alert Level 3 until 11:59pm on 30 August 2020, while the rest of the country will remain at Alert Level 2; (vi) 28 August 2020, Auckland will join the rest of New Zealand at Alert Level 2 on 31 August 2020, where the country will remain for at least another week; (vii) 14 September 2020, The Government has announced that New Zealand will remain at Alert Level 2.

12C - Others

(i) 20 May 2020, The Ministry of Health has released the NZ COVID Tracer app to support contact tracing in New Zealand; (ii) 15 July 2020, The government launched the “Stamp it Out” plan for responding to new cases, which includes several scenarios and their impacts on individuals, businesses, and other organizations such as schools; (iii) 10 September 2020, The Ministry of Education and the New Zealand Qualifications Authority (NZQA) are making changes to National Certificate of Educational Achievement (NCEA) this year, i.e. adjustments on the requirements and examination schedule, to help mitigate the impact of COVID-19; (iv) 16 November 2020, Masks will need to be worn on all public transport in Auckland and in and out of Auckland and on domestic flights throughout the country from 19 November 2020; (v) 11 December 2020, The NZ COVID Tracer app has been updated to include Bluetooth tracing technology; (vi) 3 February 2021, Medsafe has provisionally approved New Zealand's first COVID-19 vaccine.