Southeast Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 23,108.35
% of GDP (2019): 6.28%
% of Regional Total Package: 5.60%
Package Per Capita in USD: 213.74
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 PHP264,734,000,000 USD5,200,693,075
01A - Short-term lending info_outline

(i) 10 June 2020, The BSP re-offered other tenors in its term-deposit facility (TDF) and started a measured increase in offer volumes in its RRP facility with a PHP200-billion auction offering in line with the stabilization of liquidity conditions and normalization in the BSP's monetary operations. (ii) See the short-term lending component of (vi) in Measure 3A.

01B - Support policies for short-term lending info_outline PHP264,734,000,000 USD5,200,693,075

(i) 30 March 2020, the BSP announced a 200-basis point (bps) reduction of the reserve requirement ratio (RRR) for banks (an estimated additional liquidity of PHP220 billion, which also includes the impact of lowering the policy rate mentioned in Non-lending actions of Measure 2); (ii) No amount/estimate: Easier terms and access to the BSP’s rediscounting facility; (iii) No amount/estimate: 7 April 2020, Reduced the Minimum Liquidity Ratio (MLR) for stand-alone thrift banks, rural banks and cooperative banks from 20% to 16% (effective until 31 December 2020); (iv): 16 April 2020, The BSP also revised the composition of the RRR to include loans granted to micro-, small-, and medium-scale enterprises or MSMEs (equivalent to a cut of more than 2 percentage points [pps] to the RRR; see also [iii] in Non-lending actions of Measure 2). On 29 May 2020, The BSP expanded the coverage of the measure to include large enterprises. On 4 June 2020, The BSP extended the aforementioned alternative reserve compliance measures until 2022. As of 26 November 2020, PHP124.8 [update] billion in MSME loans and PHP29.1 [update] billion in loans to large enterprises have been used as alternative reserve compliance by banks. On 11 December 2020, the BSP announced limits of PHP300 billion and PHP425 billion, respectively, on the amount of loans that banks can lend to SMEs and large enterprises as alternative reserve requirement compliance. [update] (v) 21 July 2020, The BSP announced a 100-bps cut in reserve requirements of thrift banks and rural and cooperative banks to 3% and 2%, respectively, effective 31 July 2020 to increase lending capacity for MSMEs and rural clients. (vi) 9 December 2020, The BSP allowed non-stock savings and loans associations to recognize as income their accrued interest on unclassified loans outstanding for the purpose of income distribution to members. [update]

01C - Forex operations info_outline

No amount/estimate: The BSP has: (i) Relaxed documentary and reporting rules for foreign exchange operations; and (ii) 23 April 2020, Eased the asset cover requirement of banks with expanded/foreign currency deposit units.

02 - Credit creation info_outline PHP120,000,000,000 USD2,357,397,119
02A - Financial sector lending/funding info_outline
02B - Support policies for long-term lending info_outline
02B1 - Interest rate reductions

No amount/estimate: (i) The Bangko Sentral ng Pilipinas (BSP) has reduced its policy rate five times since February 2020 by a cumulative 175 bps to a record low 2% (impact along with reducing required reserves is recorded in Non-lending actions of Measure 1); (ii) 24 September 2020, The BSP announced a cap of 24% on annual interest rates for credit card loans which will take effect on 3 November 2020.

02B2 - Other policies to support long-term lending

No amount/estimate: (i) Regulatory relief measures for the banking sector: (a) temporary relaxation of requirements on compliance reporting, penalties on required reserves, and single borrower limits; and (b) a temporary relaxation of provisioning requirements (subject to the BSP approval); (c) relaxation of prudential regulations regarding marking-to-market of debt securities. These relief measures are intended to encourage banks, in turn, to provide financial relief to their borrowers (e.g., temporary grace period for loan payments). (ii) 16 April 2020, The BSP also approved a package of measures to further reduce the financial burden on loans to MSMEs including: (a) the counting of loans granted to MSMEs under banks' compliance with the reserve requirement, and on 5 May 2020: (b) deferred the implementation of the revised risk-based capital framework applicable under Basel III for stand-alone thrift banks, rural banks and cooperative banks, and (c) approved the assignment of a zero risk weight for MSME loans guaranteed by the Philippine Guarantee Corp., Agricultural Guarantee Fund Pool and the Agricultural Credit Policy Council; (iii) 21 April 2020, Waiver of fees on fund transfer transactions under PhilPass. On 5 June 2020, this was extended to the end of the year. (iv) 24 April 2020, Temporary relaxation in the credit risk weights for loans to MSMEs; (v) 28 April 2020, suspension of charges for filing, processing, and licensing/registration fees relative to application to provide electronic payment and financial services (EPFS) as an additional relief to BSFIs affected by the Corona Virus Disease 2019 (COVID-19) situation, effective for a period of six (6) months from 8 March 2020; (vi) 4 May 2020, The BSP temporarily allowed banks to use their capital buffers to absorb losses and support financing requirements, and to let their LCR go below 100% to meet liquidity demand; (vii) 6 May 2020, The BSP further eased standards on asset cover on foreign currency liabilities by subjecting lenders to a rolling two-week compliance period and give more flexibility in managing their foreign currency exposure (see also [ii] in Measure 1C). (viii) 15 May 2020, The Insurance Commision provided regulatory relief measures by (a) exempting those insurance companies from the quarterly PHP900 million net worth requirement (applicable only to those already compliant with the requirement as of end-December while those that have failed to comply before the enhanced community quarantine was declared last 17 March 2020 can only avail of the relief once they “put up additional funds to cover the net worth deficiency”); (b) relaxing the levels of regulator intervention based on the company’s level of compliance with the minimum risk-based capital ratio; and (c) extending the provisional period by which agents can sell insurance products online until the end of the year. (ix) 9 June 2020, Suspension of the submission of required reports and other documents by BSP-supervised financial institutions except for the Financial Reporting Package for Banks (FRP), the Consolidated Foreign Exchange (FX) Position Report, event-driven report requirements and reserve requirement-related reports. (x) 15 June 2020, Temporary relaxation in the borrowing limit of pawnshops from 50% to 70% until end-December 2021. (xi) 26 June 2020, Postponement of the adoption of the Supervisory Assessment Framework from July 1, 2020 to January 1, 2021. (xii) 21 July 2020, The BSP eased regulatory requirements on bank operations further until 31 March 2021 including increasing the single borrower's limit from 25% to 30%; relaxations in penalties for reserve deficiencies, notification requirements, submissions of reports and other documents, and extension in the period of compliance with supervisory requirements. (xiii) 22 July 2020, The BSP exempted debt securities held by market makers from the credit exposure limit to a single borrower. (xiv) 20 August 2020, The BSP increased the real estate loan limit for banks from 20% to 25% of their total loan portfolio net of interbank loans. (xv) 28 December 2020, The SEC announced prudential accounting relief measures for regulated financial institutions allowing them to stagger the booking of provision of credit losses for up to 5 years pursuant to the Bayanihan 2 law. [update]

02C - Loan guarantees PHP120,000,000,000 USD2,357,397,119

PHP120 billion credit guarantee for affected small businesses. As of end-June 2020, PHP37.5 billion in guarantees have been approved.

03 - Direct long-term lending info_outline PHP28,518,000,000 USD560,235,425
03A - Long-term lending info_outline PHP28,518,000,000 USD560,235,425

(i) PHP10 billion Land Bank of the Philippines loan program for LGUs to increase their emergency funding. As of 10 October 2020, an additional PHP10 billion has been made available. (ii) PHP2.8 billion additional funding for DA’s Survival and Recovery Assistance Program (SURE Aid)for affected farmers and fishers. (iii) PHP1.203 billion for DTI loan program for micro, small, and medium enterprises (MSMEs) for enterprise development training and livelihood kits. As of 29 July 2020, the Department of Trade and Industry announced a new funding source worth PHP3 billion for its CARES lending program for MSMEs. A further PHP1 billion in additional funding was secured from state-owned banks. (iv) Up to PHP15 million loan assistance from the DA for micro and small enterprises engaged in agriculture and fisheries production. (v) PHP3 billion lending program for "study now, pay later" schemes in private schools by the Land Bank of the Philippines. As of 7 July 2020, PHP260 million have been approved. (vi) 10 July 2020, PHP1.5 billion LBP I-Study lending program offering short-term (<1 year) loans for preschool to secondary students and term loans (up to 3 years) for tertiary students.

03B - Forbearance

No amount/estimate: (i) Implementation of a minimum 30-day grace period for payment of all loans, without incurring interest on interest, penalties, or other charges; (ii) 28 April 2020, Pursuant to Republic Act No. 11469 entitled “Bayanihan to Heal as One Act”, the suspension of acceptance of installment payments for Bangko Sentral ng Pilipinas (BSP) properties purchased on installment basis is extended until 31 May 2020, and additional interest or penalties will not be imposed.

04 - Equity support info_outline
05 - Health and income support PHP763,046,000,000 USD14,990,020,352
05A - Health support PHP133,100,000,000 USD2,614,746,305

(i) PHP2.9 billion purchase of medical equipment and supplies; (ii) PHP1.8 billion for 1 million personal protective equipment (PPE) sets procured by the Department of Health; (iii) PHP22.1856 billion PhilHealth medical expenses coverage for COVID-19 patients and assistance to health workers, which includes PhilHealth medical coverage, compensation for severe infection, and death benefit; (iv) PHP420.6 million for COVID-19 medical coverage; (iv) Allocation of PHP53.2 million by the Department of Science and Technology for production of test kits developed by the University of the Philippines -National Institute of Health; (vi) PHP2.7015 expedited clearance and tax and duty-exempt importations of PPE and medical goods; (vii) PHP 511.8 million compensation for private facilities used for the purpose of fighting COVID-19; (viii) Healthcare equipment and supplies exempted from import duties, taxes and other fees; (ix) Tax exemptions for donations of cash, critical healthcare equipment, relief goods, and the use of property for fighting COVID-19. (x) 5 May 2020, Temporary elimination of tariffs and other taxes and fees on qualified manufacturers and suppliers of medicines, medical equipment and devices, or articles needed in the supply chain, among others; (xi) 19 May 2020, The Department of Finance announced that a total of PHP58.6 billion have been marshalled to support frontline workers and increase health system capacity. (xii) See (ii) in Measure 5C.

05B - Income support PHP464,446,000,000 USD9,124,030,520
05B1 - Tax and contribution deferrals and policy changes PHP140,066,000,000 USD2,751,593,208

(i) PHP470 million deferment of filing, payment of taxes, and temporary exemptions; (ii) PHP139.596 billion net operating loss carryover (NOLCO) of five years to help business cope with losses; (iii) 11 September 2020, The Bayanihan 2 fiscal package was enacted worth PHP165.5 billion consisting of PHP140 billion in regular appropriations and PHP25.5 billion in contingency funds (the law contains provisions formalizing the 5-year NOLCO extension for 2020 and 2021).

05B2 - Tax and contribution rates reduction

19 May 2020, Sec. Dominguez stated that an estimated PHP42 billion pesos will be released from the reduction in corporate income tax rate from 30% to 25% in the second half of 2020 as part of the corporate tax and incentives reform (CREATE) bill under the second part of the recovery plan (CREATE has been approved by both chambers of Congress and is up for the President's signature).

05B3 - Wage support and subsidies to individuals and households PHP260,880,000,000 USD5,124,981,337

(i) PHP205 billion emergency subsidy program for 18 million low-income families in the informal sector; (ii) PHP51 billion wage subsidy for employees of small businesses that closed during the enhanced community quarantine; (iii) PHP1.5 billion Department of Labor and Employment (DOLE) assistance for Overseas Filipino Workers; (iv) PHP2 billion DOLE cash assistance program for displaced workers; (v) PHP1.2 billion Social Security System assistance to cover unemployment benefits; (vi) PHP180 million emergency employment program by the DOLE for informal sector workers; (vii) 26 September 2020, The Department of Labor and Employment announced a PHP1 billion educational subsidy for college-level dependents of displaced OFWs.

05B4 - Subsidies to business

No amount/estimate: 13 October 2020, The Civil Aviation Authority of the Philippines (CAAP) will waive airport fees for domestic carriers until 19 December 2020 pursuant to the Bayanihan 2 Act.

05B5 - Indirect income support PHP3,000,000,000 USD58,934,928

PHP3 billion for Technical Education and Skills Development Authority online programs to upskill workers.

05B6 - No breakdown (income support) PHP60,500,000,000 USD1,188,521,048

(i) PHP30 billion additional assistance to local governments to support vulnerable sectors; (ii) PHP16.5 billion for rice programs of the Department of Agriculture (DA) and Department of Trade and Industry (DTI) to boost the buffer stock; (iii) PHP14 billion from the Tourism Infrastructure and Enterprise Zone Authority to support the tourism industry.

05C - No breakdown (health and income support) PHP165,500,000,000 USD3,251,243,527

(i) 11 September 2020, The Bayanihan 2 fiscal package was enacted worth PHP165.5 billion consisting of PHP140 billion in regular appropriations and PHP25.5 billion in contingency funds. (ii) 28 December 2020, The President signed the PHP4.1 trillion 2021 budget into law which includes PHP72.5 billion for the country's COVID-19 vaccination program and PHP2 billion for the purchase of personal protective equipment. [update]

06 - Budget reallocation info_outline PHP266,235,000,000 USD5,230,180,184

As of 24 June 2020, PHP266.235 in funding released to agencies involved in the COVID-19 response efforts taken out of the pooled savings from discontinued programs, projects or activities (P/APs) of agencies under the Executive Department.

07 - Central bank financing government PHP1,622,000,000,000 USD31,864,151,062
07A - Direct lending & reserve drawdown PHP1,560,000,000,000 USD30,646,162,550

(i) 23 March 2020, To further support the Filipino people during the COVID-19 pandemic, the Monetary Board authorized the Bangko Sentral ng Pilipinas (BSP) to purchase government securities from the Bureau of Treasury (BTR) under a repurchase agreement in the amount of PHP300 billion with a maximum repayment period of 6 months. On 26 August 2020, The BTR stated programmed borrowings from the BSP total PHP500 trillion (out of a ceiling of PHP540 billion) in 2020 and PHP1 trillion in 2021. After the passage of the Bayanihan II Law on 11 September 2020, the cap on provisional advances by the BSP to the national government has effectively increased to 30% of the government's average revenue for fiscal years 2017-2019 or from PHP540 billion to PHP850 billion. On 30 September 2020, The BSP approved an additional PHP540 billion provisional advance to the national government following the Treasury's repayment of the initial PHP300 billion advance (this brings the total borrowing to PHP840 billion versus the PHP850 billion ceiling). 29 December 2020, The Treasury announced it is seeking another PHP540 billion loan from the BSP. [update] (ii) 26 March 2020, The BSP remitted PHP20 billion pesos in dividends to the national government despite no longer being required to do so under its newly amended charter.

07B - Secondary purchase: government securities PHP62,000,000,000 USD1,217,988,512

(i) 24 March 2020, BSP opened a daily one-hour window to purchase selected highly traded and liquid government securities from banks at market prices; (ii) From 8 April 2020, all peso-denominated government securities issuances could be purchased by the BSP. Window will remain open between April and June 2020, or until market conditions return to normal; (iii) As of 22 April 2020, PHP62 billion in government securities (GS) have been purchased by the Bangko Sentral ng Pilipinas (BSP) as part of expanded GS purchases that began on 24 March 2020.

08 - International Assistance Received PHP296,488,488,727 USD5,824,509,243
08A - Swaps info_outline
08B - International loans/grants PHP296,488,488,727 USD5,824,509,243
08B1 - Asian Development Bank PHP95,971,611,296 USD1,885,360,000

(i) 23 April 2020, USD1.5 billion loan under the COVID-19 Active Response and Expenditure Support (CARES) Program; (ii) 27 April 2020, USD200 million loan under the Social Protection Support Project (Second Additional Financing); (iii) 13 March 2020, USD3 million grant under the COVID-19 Emergency Response; (iv) 26 March 2020, USD5 million grant under the Implementing a Rapid Emergency Supplies Provision Assistance to Design a Sustainable Solution for COVID-19 Impact Areas in the National Capital Region through a Public Private Collaboration in the Philippines; (v) 24 April 2020, USD750,000 grant under TA: Policy Advice for COVID-19 Economic Recovery in Southeast Asia; and (vi) USD1.4 million grant under TA: Regional Support to Address the Outbreak of COVID-19; (vi) 1 July 2020, USD100,000 grant under the technical assistance on Promoting Digital Finance Solutions for Inclusive Finance among Partner Financial Institutions. (vii) 12 August 2020, USD50 million loan under the Competitive and Inclusive Agriculture Development Program, Subprogram 1. (viii) 24 August 2020, USD125 million loan under the Health System Enhancement to Address and Limit (HEAL) COVID-19 Project. (ix) 6 October 2020, USD20,000 grant under ADB's TA on Capacity Development for the Supply Chain Finance Program (Phase 2) (Subproject 3). (x) 5 November 2020, USD90,000 grant under the TA on Creating Investable Cities in Post-COVID-19 Asia-Pacific: Enhancing Competitiveness and Resilience through Quality Infrastructure.

08B2 - Other PHP200,516,877,431 USD3,939,149,243

(i) 9 April 2020, USD500 million World Bank (WB) Third Disaster Risk Management Development Policy Loan; (ii) 23 April 2020, USD100 million World Bank loan for Philippines - COVID-19 Emergency Response Project. (iii) As of 20 July 2020, USD19.8 million in grants for health, humanitarian assistance, skills training, and technical support, among others, from the United States Agency for International Development (USAID) for health and humanitarian assistance. (iv) 28 May 2020, USD750 million loan from the Asian Infrastructure Investment Bank (AIIB) for the Philippines' COVID-19 response as parallel co-financing for the CARES Program. (v) 28 May 2020, USD500 million from the World Bank for Philippines Emergency COVID-10 Response Development Policy Loan. (vi) As of 2 September 2020, PHP110.3 million worth of donations and bilateral assistance from the government of Canada such as N95 masks and funding for reproductive health services during the pandemic. (vii) 10 June 2020, PHP1 million grant from the European Union's Governance in Justice program for the COVID-19 pandemic response. (viii) 1 July 2020, JPY50 billion loan under the COVID-19 crisis response emergency support of the Japan International Cooperation Agency (JICA) and JPY2 billion grant aid for medical equipment and laboratories. (ix) 4 August 2020, USD122 million worth of United Nations (UN) grants have been earmarked for the COVID-19 Response Plan for the Philippines to assist 5.4 million poorest households in congested urban areas. As of 29 October 2020, The UN has provided PHP1.4 billion for the Philippines' COVID-19 pandemic response measures implemented through 20 UN agencies. (x) 15 September 2020, PHP23.3 billion (JPY50 billion) post-disaster stand-by loan from JICA for budget support during national emergencies such as the COVID-19 pandemic. (xi) 30 October 2020, The European Commission is providing EUR2.51 million (USD2.78 million) in humanitarian aid for the Philippines. (xii) 29 October 2020, The South Korean government extended a USD100 million loan for the Philippines' pandemic response through the Export-Import Bank of Korea. (xiii) 16 December 2020, The World Bank approved two projects to support the Philippines' pandemic recovery efforts: USD600 million Promoting Competitiveness and Enhancing Resilience to Natural Disasters Development Policy Loan for competitiveness-enhancing rforms; and USD300 million Additional Financing for KALAHI-CIDSS National Community Driven Development Project (KC-NCDDP) for community-initiated responses to the impact of COVID-19. [update]

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown

On 22 May 2020, the Finance Department backed the expanded PHP568 billion fiscal stimulus bill (PESA) approved at the House Committee level on 19 May 2020. On 4 June 2020, the PHP1.3 trillion Accelerated Recovery and Investments Stimulus Bill (ARISE) was passed on third and final reading by the House of Representatives in lieu of PESA. On 20 August 2020, a PHP165 billion Bayanihan 2 measure was approved by both Houses of Congress composed of PHP140 billion in additional expenditures plus PHP25 billion in standby appropriations which includes PHP10 billion for the procurement of COVID-19 vaccines.

11 - Other Economic Measures

(i) PHP2.9 billion assistance from Philippine Amusement and Gaming Corporation (PAGCOR) and Philippine Charity Sweepstakes Office (PCSO) is intended for the purchase of medical equipment and supplies (See (i) in Measure 5A). On 5 June 2020, PAGCOR remitted an additional PHP5 billion in dividends (bringing the total to PHP17 billion); (ii) Banks are also expected to suspend all fees and charges imposed on online banking platforms during the period of regulatory relief. (iii) 2 May 2020, The government imposed a temporary additional 10% levy on imported crude and refined petroleum products to augment resources for COVID-19. (iv) 22 May 2020, The BSP is pushing for the enactment of the proposed Financial Institutions Strategic Transfer (FIST) law, an enhancement of the Special Purpose Vehicle Act that would allow financial institutions to clear up non-performing assets and have additional funds to lend to their clients.

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

(i) The government has put the Luzon island, including Metro Manila, under an “enhanced community quarantine” starting 12 March 2020. (ii) Suspension of flights from high-risk economies. (ii) Suspension of flights from high-risk economies. (iii) 12 May 2020, The government announced an easing in quarantine measures in many areas of the country after 15 May 2020 but will extend lockdowns in certain areas in the National Capital Region, Cebu City, and Laguna province. (iv) 28 May 2020, The Government announced the easing of lockdown measures in the National Capital Region and remaining areas under enhanced community quarantine by 1 June 2020. (v) 3 June 2020, Domesic flights for essential travel resumed. (vi) 7 July 2020, Authorities lifted restrictions on non-essential outbound travel. On 23 October 2020, Authorities announced that foreigners with investors visa will be allowed entry into the country starting on 1 November 2020. On 29 December 2020, Authorities announced a ban on travellers from 20 countries, including the United Kingdom, where the new coronavirus variant has been detected from 30 December 2020 to 15 January 2021. [update]

12B - Measures affecting business and workplace

(i) The government has put the Luzon island, including Metro Manila, under an “enhanced community quarantine” starting 12 March 2020. (ii) 12 May 2020, The government announced an easing in quarantine measures in many areas of the country after 15 May 2020 but will extend lockdowns in certain areas in the National Capital Region, Cebu City, and Laguna province. (iii) 28 May 2020, The Government announced the easing of lockdown measures in the National Capital Region and remaining areas under enhanced community quarantine by 1 June 2020.

12C - Others

(i) School closures starting 12 March 2020 and restrictions on mass gatherings. While schools have remained closed, limited gatherings have been allowed following the easing of community quarantine levels per locality.