Southeast Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 21,448.35
% of GDP (2019): 5.83%
% of Regional Total Package: 5.22%
Package Per Capita in USD: 201.11
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) June 10, 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) March 30, 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: April 7, Reduced the Minimum Liquidity Ratio (MLR) for stand-alone thrift banks, rural banks and cooperative banks from 20% to 16% (effective until December 31); (iv): April 16, 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 May 29, The BSP expanded the coverage of the measure to include large enterprises. On June 4, The BSP extended the aforementioned alternative reserve compliance measures until 2022. As of July 23, PHP96.5 billion in MSME loans and PHP12.3 billion in loans to large enterprises have been used as alternative reserve compliance by banks. (v) July 21, The BSP announced a 100-bps cut in reserve requirements of thrift banks and rural and cooperative banks to 3% and 2%, respectively, effective July 31 to increase lending capacity for MSMEs and rural clients.

01C - Forex operations info_outline

No amount/estimate: The BSP has: (i) Relaxed documentary and reporting rules for foreign exchange operations; and (ii) April 23, 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

No amount/estimate: (i) The Bangko Sentral ng Pilipinas (BSP) has reduced its policy rate four times since February by a cumulative 175 bps to a record low 2.25% (impact along with reducing required reserves is recorded Non-lending actions of Measure 1); (ii) 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). (iii) April 16, 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 May 5: (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; (iv) April 21, Waiver of fees on fund transfer transactions under PhilPass. On June 5, this was extended to the end of the year. (v) April 24, Temporary relaxation in the credit risk weights for loans to MSMEs; (vi) April 28, 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; (vii) May 4, 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; (viii) May 6, 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). (ix) May 15, 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 March 17 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. (x) June 9, 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. (xi) June 15, Temporary relaxation in the borrowing limit of pawnshops from 50% to 70% until end-December 2021. (xii) June 26, Postponement of the adoption of the Supervisory Assessment Framework from July 1, 2020 to January 1, 2021. (xiii) July 21, 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. (xiv) July 22, The BSP exempted debt securities held by market makers from the credit exposure limit to a single borrower. (xv) August 20, The BSP increased the real estate loan limit for banks from 20% to 25% of their total loan portfolio net of interbank loans. (xvi) September 24, The BSP announced a cap of 24% on annual interest rates for credit card loans which will take effect on November 3. [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 PHP18,518,000,000 USD363,785,665
03A - Long-term lending info_outline PHP18,518,000,000 USD363,785,665

(i) PHP10 billion Land Bank of the Philippines loan program for LGUs to increase their emergency funding. (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 July 29, 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 July 7, PHP260 million have been approved. (vi) July 10, 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) April 28, 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 - Government support to income/revenue PHP688,546,000,000 USD13,526,469,641
05A - Health PHP58,600,000,000 USD1,151,195,593

(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) May 5, 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) May 19, The Department of Finance announced that a total of PHP58.6 billion have been marshalled to support frontline workers and increase health system capacity.

05B - Non-health PHP629,946,000,000 USD12,375,274,047

(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) PHP30 billion additional assistance to local governments to support vulnerable sectors; (iv) PHP16.5 billion for rice programs of the Department of Agriculture (DA) and Department of Trade and Industry (DTI) to boost the buffer stock; (v) PHP1.5 billion Department of Labor and Employment (DOLE) assistance for Overseas Filipino Workers; (vi) PHP2 billion DOLE cash assistance program for displaced workers; (vii) PHP1.2 billion Social Security System assistance to cover unemployment benefits; (viii) PHP3 billion for Technical Education and Skills Development Authority online programs to upskill workers; (ix) PHP470 million deferment of filing, payment of taxes, and temporary exemptions; (x) PHP139.596 billion net operating loss carryover (NOLCO) of five years to help business cope with losses; (xi) PHP180 million emergency employment program by the DOLE for informal sector workers; (xii) PHP14 billion from the Tourism Infrastructure and Enterprise Zone Authority to support the tourism industry. (xiii) September 11, 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.

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

As of June 24, 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) March 23, 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 August 26, 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 September 11, 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 September 30, 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). [update] (ii) March 26, 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) March 24, 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, 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 April 22, 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 March 24.

08 - International Assistance Received PHP245,437,777,323 USD4,821,619,243
08A - Swaps info_outline
08B - International loans/grants PHP245,437,777,323 USD4,821,619,243
08B1 - Asian Development Bank PHP95,966,011,900 USD1,885,250,000

(i) April 23, USD1.5 billion loan under the COVID-19 Active Response and Expenditure Support (CARES) Program; (ii) April 27, USD200 million loan under the Social Protection Support Project (Second Additional Financing); (iii) March 13, USD3 million grant under the COVID-19 Emergency Response; (iv) March 26, 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) April 24, 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) July 1, USD100,000 grant under the technical assistance on Promoting Digital Finance Solutions for Inclusive Finance among Partner Financial Institutions. (vii) August 12, USD50 million loan under the Competitive and Inclusive Agriculture Development Program, Subprogram 1. (viii) August 24, USD125 million loan under the Health System Enhancement to Address and Limit (HEAL) COVID-19 Project.

08B2 - Other PHP149,471,765,423 USD2,936,369,243

(i) April 9, USD500 million World Bank (WB) Third Disaster Risk Management Development Policy Loan; (ii) April 23, USD100 million World Bank loan for Philippines - COVID-19 Emergency Response Project. (iii) As of July 20, 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) May 28, 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) May 28, USD500 million from the World Bank for Philippines Emergency COVID-10 Response Development Policy Loan. (vi) As of September 2, 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) June 10, PHP1 million grant from the European Union's Governance in Justice program for the COVID-19 pandemic response. (viii) July 1, 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) August 4, USD122 million worth of United Nations grants for the COVID-19 Response Plan for the Philippines to assist 5.4 million poorest households in congested urban areas. (x) September 15, PHP23.3 billion (JPY50 billion) post-disaster stand-by loan from JICA for budget support during national emergencies such as the COVID-19 pandemic.

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

(i) On May 22, the Finance Department backed the expanded PHP568 billion fiscal stimulus bill (PESA) approved at the House Committee level on May 19. On June 4, 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 August 20, a PHP165 billion 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. (ii) May 19, 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 bill under the second part of the recovery plan.

11 - Other Economic Measures

(i) (ii) 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 June 5, PAGCOR remitted an additional PHP5 billion in dividends (bringing the total to PHP17 billion); (iii) Banks are also expected to suspend all fees and charges imposed on online banking platforms during the period of regulatory relief. (iv) May 2, The government imposed a temporary additional 10% levy on imported crude and refined petroleum products to augment resources for COVID-19. (v) May 22, 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

(i) The government has put the Luzon island, including Metro Manila, under an “enhanced community quarantine” starting March 12; (ii) Suspension of flights from high-risk economies; (iii) School closures starting March 12; (iv) Restrictions on mass gatherings; (v) May 12, The government announced an easing in quarantine measures in many areas of the country after May 15 but will extend lockdowns in certain areas in the National Capital Region, Cebu City, and Laguna province. (vi) May 28, The Government announced the easing of lockdown measures in the National Capital Region and remaining areas under enhanced community quarantine by June 1. (vii) June 3, Domesic flights for essential travel resumed. (viii) uly 7, Authorities lifted restrictions on non-essential outbound travel.