Pacific

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 20.92
% of GDP (2019): 7.19%
% of Regional Total Package: 0.80%
Package Per Capita in USD: 1,161.53
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
02 - Credit creation info_outline
02A - Financial sector lending/funding info_outline
02B - Support policies for long-term lending info_outline
02B1 - Interest rate adjustments
02B2 - Other policies to support long-term lending
02C - Loan guarantees
03 - Direct long-term lending info_outline
03A - Long-term lending info_outline
03B - Forbearance

No amount/estimate: (i) Some private banks have introduced loan deferral and forbearance programs for three months; and (ii) The National Development Bank of Palau announced plans to provide financial relief to affected business and households, including interest only payments, term extension, loan consolidation, and temporary payment deferral.

04 - Equity support info_outline
05 - Health and income support USD20,916,808 USD20,916,808
05A - Health support USD916,808 USD916,808

(i) The government is taking actions to support the health sector and the economy; (ii) The parliament is appropriating an additional USD916,808 (0.3% of GDP) to the Hospital Trust Fund to help with prevention and preparation for COVID-19.

05B - Income support USD20,000,000 USD20,000,000
05B1 - Tax and contribution deferrals and policy changes
05B2 - Tax and contribution rates reduction
05B3 - Subsidies to individuals and households
05B4 - Subsidies to businesses
05B5 - Indirect income support
05B6 - No breakdown (income support) USD20,000,000 USD20,000,000

(i) The government has also announced measures totaling USD20 million (8% of GDP) to mitigate economic and social hardship through targeted support to affected businesses and individuals. These include a new unemployment benefit scheme, temporary subsidies for utility bills, a new temporary job creation scheme for public works, and a lending scheme for the private sector. There is no breakdown between these measures.

05C - No breakdown (health and income support)
06 - Budget reallocation info_outline
07 - Central bank financing government
07A - Direct lending and reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received USD60,925,650 USD60,925,650
08A - Swaps info_outline
08B - International loans/grants USD60,925,650 USD60,925,650
08B1 - Asian Development Bank USD57,040,000 USD57,040,000

(i) 15 April 2020, USD0.02 million announced by the ADB as part of the Strengthening Social Protection in the Pacific program. On 24 July 2020, additional USD0.04 million co-financing under the same program; (ii) 21 April 2020, USD15 million funding for a Disaster Resilience Program; (iii) 24 April 2020, USD0.13 million allocated by the ADB as additional funding to Palau under the Regional Project on Developing the Pacific Health Sector; (iv) USD0.18 million in Country Support under TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases. As of 30 January 2021, this has been increased to USD0.32 million; (v) 5 June 2020, USD0.14 million in financing under the Pacific Economic Management, Phase 3 project; (vi) 29 July 2020, USD1 million funding under the COVID-19 Emergency Response; (vii) 29 July 2020, USD20 million under the Health Expenditure and Livelihoods Support Program; (viii) 10 August 2020, USD0.10 million under the regional project, Knowledge and Support Technical Assistance for Strengthening Water, Sanitation, and Hygiene Practices and Hygiene Behavioral Change in the Pacific; (ix) 12 August 2020, USD0.06 million under the regional project, Support for Gender Sensitive Responses to COVID-19 in the Pacific Developing Member Countries; (x) 15 December 2020, USD20 million under the Pacific Disaster Resilience Program (Phase 3); (xi) 17 December 2020, USD0.1 million from the regional project, Supporting Recovery by Micro, Small and Medium-sized Enterprises in the Pacific from the Effects of the COVID-19 Pandemic; (xii) 18 December 2020, USD0.17 million from the regional project, Assessing and Improving COVID-response Capacity in the North Pacific.

08B2 - Other USD3,885,650 USD3,885,650

(i) 20 April 2020, USD1.16 million Coronavirus Aid, Relief, and Economic Security Act Supplemental Funding from the United States; (ii) 1 April 2020, USD1.01 million supplemental funding from the US Department of Health and Human Services (HHS) as part of its CDC program; (iii) 27 March 2020, USD1.59 million in additional supplemental funding from the DOI Office of Insular Affairs' Technical Assistance Program; (iv) 24 March 2020, USD25,650 in funding from the HHS Office of the Assistant Secretary for Preparedness and Response (ASPR) for planning, staffing, purchasing PPE, among others; (v) 1 September 2020, The US Department of Labor announced USD100,000 in funding to support state efforts to combat fraud and recover improper payments in the Unemployment Insurance (UI) program, including those programs created under the Coronavirus Aid, Relief and Economic Security (CARES) Act; (vi) No amount/estimate: 5 September 2020, the U.S. Secretary of Transportation has announced that they will award more than USD1.2 billion in airport safety and infrastructure grants through the Federal Aviation Administration (FAA) to 405 airports in 50 states and the Federated States of Micronesia, the Marshall Islands, the Northern Mariana Islands, Puerto Rico, Palau, and the U.S. Virgin Islands. The Administration sees this move as especially important as economies recover from the COVID-19 pandemic.

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown
11 - Other Economic Measures
12 - Non-Economic Measures
12A - Measures affecting travel and transport (local and international)

(i) The authorities have adopted early prevention and containment measures. These include temporary bans on international air and sea travel, health screening at ports of entry, and some other measures reflected in 12C; (ii) 31 July 2020, the government announced the re-establishment of essential air services, allowing a minimum number of flights for emergencies, repatriation, medical referral, and worker recruitment. Regular commercial air travel remains temporary suspended; (iii) January 2021, All travelers (even essential workers and residents) have to quarantine and are required to test 72 hours prior to arrival in Palau. Passengers from low risk areas such as Taipei,China are required to observe a 7-day mandatory quarantine in a designated government facility, and are tested on days 1, 7, and 14. Passengers from high risk areas are placed under mandatory quarantine for 14 days and are tested on days 1, 7, 14, and 21. The first group of Taipei,China passengers to fly to Palau under a new travel bubble is expected to land in the Pacific country early April 2021. [update]

12B - Measures affecting business and workplace
12C - Others

(i) School closures, and restrictions on public events were also in effect due to the early prevention and containment measures; (ii) Schools will reopen on 3 August 2020 with safety measures.