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|
|01B - Support policies for short-term lending info_outline||
No amount/estimate: The Bank of Papua New Guinea (BPNG) has reduced the Cash Reserve Requirement to 7% from 10% to provide additional liquidity to the commercial banks.
|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 reductions||
No estimate/amount: (i) 30 March 2020, BPNG has reduced the Kina Facility Rate (KFR) – the main policy rate - by 200 basis points to 3% from 5% and has asked the commercial banks to reduce their respective Indicator Lending Rates; (ii) To encourage interbank activity, BPNG has increased the margin on central bank borrowing by 25 basis points to 100 basis points of both sides of KFR.
|02B2 - Other policies to support long-term lending|
|02C - Loan guarantees|
|03 - Direct long-term lending info_outline||PGK600,000,000||USD176,097,676|
|03A - Long-term lending info_outline||PGK600,000,000||USD176,097,676||
The government has announced PGK600 million credit line to support businesses and individuals in coordination with the banks and financial institutions.
|03B - Forbearance||
No amount/estimate: The government is working with the commercial banks to provide a 3-month buffer on loan repayments. To cover for the 3-month loan repayment holiday, BPNG will relax prudential standards relating to asset quality, capital adequacy and loan-loss provisioning.
|04 - Equity support info_outline|
|05 - Health and income support||PGK510,000,000||USD149,683,024|
|05A - Health support||PGK10,000,000||USD2,934,961||
PGK10 million was released to the National Department of Health.
|05B - Income support||PGK500,000,000||USD146,748,063|
|05B1 - Tax and contribution deferrals and policy changes||PGK500,000,000||USD146,748,063||
No amount/estimate: The government has asked the superannuation funds to allow members who have been laid off from work due to COVID-19 to access their savings. On April 8, Superfunds announced that its members whose employment was terminated by their employer as a result of COVID-19 will be entitled to a one-off payment of 20% of the member’s contribution (PGK500 million support from superannuation savings to employees affected by the economic slowdown).
|05B2 - Tax and contribution rates reduction|
|05B3 - Wage support and subsidies to individuals and households|
|05B4 - Subsidies to business|
|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|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities||
No amount/estimate: BPNG has announced its intention to repurchase government securities in an open market quantitative easing program to provide liquidity to the holders of the instruments.
|08 - International Assistance Received||PGK2,370,883,084||USD695,845,000|
|08A - Swaps info_outline|
|08B - International loans/grants||PGK2,370,883,084||USD695,845,000|
|08B1 - Asian Development Bank||PGK1,048,395,440||USD307,700,000||
(i) 8 April 2020, TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases USD0.85 million for Papua New Guinea; (ii) 15 April 2020, USD0.08 million technical assistance under Strengthening Social Protection in the Pacific ; (iii) 24 April 2020, USD0.13 million technical assistance under Developing the Pacific Health Sector (Additional Financing); (iv) 5 June 2020, USD0.14 million technical assistance under Pacific Economic Management (Additional Financing); (v) 24 June 2020, USD0.5 million technical assitance under Support for Water and Sanitation Sector Management (Additional Financing); (vi) June 30, USD0.10 million techinal assistance under Quality Jobs and the Future of Work; (vii) 1 July 2020, USD0.15 million techical assistance under Promoting Digital Finance Solutions for Inclusive Finance among Partner Financial Institutions; (viii) 29 July 2020, USD3 million under COVID-19 Emergency Response; (ix) 10 August 2020, USD2.66 million under Knowledge and Support Technical Assistance for Strengthening Water, Sanitation, and Hygiene Practices and Hygiene Behavioral Change in the Pacific; (x) 12 August 2020, USD0.06 million technical assitance under "Support for gender sensitive responses to COVID-19 in the Pacific Developing Member Countries; (xi) 2 December 2020, USD0.03 million technical assistnace under Promoting Transformative Gender Equality Agenda in Asia and the Pacific. [update]; (xii) 8 December 2020, USD250 million COVID-19 Rapid Response Program. [update]; (xiii) 8 December 2020, USD50 million Health Services Sector Development Program. [update]
|08B2 - Other||PGK1,322,487,644||USD388,145,000||
(i) 10 April 2020, USD20 million World Bank COVID-19 Emergency Response Project, IDA credit; (ii) 17 April 2020, USD1.2 million from USAID to prepare laboratory systems, activate case-finding and event-based surveillance, support technical experts for response and preparedness, risk communication, infection prevention and control, and more; (iv) May 2020, USAID support to date increased to USD3.55 million; (v) 20 May 2020, USD995,593 UN COVID-19 Response & Recovery Fund for Integrating WASH, Nutrition, MNH interventions for COVID-19 Response in Western Province, Papua New Guinea; (vi) 9 June 2020, USD363.6 million to help cover balance of payments needs; (vii) 23 December 2020, Paris Club granted suspension of debt service due from 1st January to 30th June 2021.
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown||PGK4,490,000,000||USD1,317,797,605||
On 2 April 2020, the PNG government announced a PGK5.6 billion economic stimulus package in the parliament. PGK4.49 billion is equal to PGK5.6 billion less PGK600 million credit line (see Measure 3), PGK500 million support from superannuation savings (see Non-Health in Measure 5), and PGK10 million for health (see Health in Measure 5).
|11 - Other Economic Measures|
|12 - Non-Economic Measures|
|12A - Measures affecting travel and transport (local and international)||
(i) The government had started imposing containment measures since early February, including (a) a ban on travelers from Asian countries, (b) reduced international flights, (c) mandatory health declaration forms for incoming travelers and enhanced screening at designated ports of entries; (ii) April 2, the PNG parliament voted to shutdown the country and extended the state of emergency which started on March 24 for further two months.
|12B - Measures affecting business and workplace|
|12C - Others|