Pacific

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 1,644
% of GDP (2019): 6.98%
% of Regional Total Package: 66.30%
Package Per Capita in USD: 190.97
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

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

No estimate/amount: (i) March 30, 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.

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 - Government support to income/revenue PGK510,000,000 USD149,683,024
05A - Health PGK10,000,000 USD2,934,961

PGK10 million was released to the National Department of Health.

05B - Non-health 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).

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 PGK1,326,576,284 USD389,345,000
08A - Swaps info_outline
08B - International loans/grants PGK1,326,576,284 USD389,345,000
08B1 - Asian Development Bank PGK4,088,640 USD1,200,000

(i) April 8, 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) April 15, USD0.08 million technical assistance under Strengthening Social Protection in the Pacific ; (ii) April 24, USD0.13 million technical assistance under Developing the Pacific Health Sector (Additional Financing); (ii) June 5, USD0.14 million technical assistance under Pacific Economic Management (Additional Financing). [update]

08B2 - Other PGK1,322,487,644 USD388,145,000

(i) April 10, USD20 million World Bank COVID-19 Emergency Response Project, IDA credit; (ii) April 17, 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, USAID support to date increased to USD3.55 million; (v) May 20, 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) June 9, USD363.6 million to help cover balance of payments needs.

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown PGK4,490,000,000 USD1,317,797,605

On April 2, 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

(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.