Pacific

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 38
% of GDP (2019): 2.64%
% of Regional Total Package: 1.52%
Package Per Capita in USD: 57.70
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: June 15: (i) The Central Bank of Solomon Islands (CBSI) has reduced the cash reserve requirements from 7.5% to 5% to ensure additional liquidity support [update]; (ii) The bank has reduced its stock of Bokolo Bills, which are similar to Treasury Bills, but are issued by the central bank, to mop up excess liquidity in the financial system [update].

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 amount/estimate: (i) April, The central bank has confirmed its commitment to continue maintaining an expansionary monetary policy stance; (ii) June 15, The bank also relaxed some commercial banks' Prudential Guidelines (No. 2) on asset classification and provisionsing and (No. 8) regarding disclosure of interest rates, fees, and charges [update].

02C - Loan guarantees
03 - Direct long-term lending info_outline
03A - Long-term lending info_outline

No amount/estimate: May, The central bank will be rolling out an export-import facility to assist businesses with opportunities for competitive financing.

03B - Forbearance

No amount/estimate: May, The government is encouraging commercial banks to grant a 3 to 6-month grace period for all loan repayments.

04 - Equity support info_outline

No amount/estimate: May: (i) The government will use a fraction of the COVID-19 Bond on equity investments into Soltuna, Kolombangara Forest Products Limited, and Solomon Airlines; (ii) The stimulus package includes equity injections to government-owned companies.

05 - Government support to income/revenue SBD309,000,000 USD37,668,469
05A - Health

May 6, Part of the stimulus package provided by the government includes a USD10 million health grant to support health needs of the provincial health hospitals, clinics, and rural health centers (See package in Measure 5B).

05B - Non-health SBD309,000,000 USD37,668,469

No amount/estimate: April: (i) The government has scaled down nonessential public services and will support affected public officers with one-off travel allowance; (ii) The government has not laid off any public servants, but instead required them to take leave on half pay; (iii) The National Provident Fund has made funds available to its members that are temporarily laid off or returned home; (iv) Two state-owned enterprises (Solomon Islands Ports Authority and Solomon Islands Electricity Authority) are providing dividend payments to support the government’s COVID-19 preparedness and response plan; (v) April 8, The stimulus package is expected to include (a) utility relief from Solomon Power and Ports Authority, (b) loan and interest relief from banks and financial institutions, (c) tax relief for specific sectors, and (d) ongoing payroll support for nonessential public servants; (vi) Measures will likely include capital grants to businesses to support investment in productive and resource sectors, focusing on investments that add value to agricultural products and the fisheries, forestry and tourism sectors, including through a new Covid-19 finance product to support agricultural ventures; (vii) It will also be used to finance specific investments and products of the Development Bank of Solomon Islands; (viii) May 6, The government has adopted a COVID-19 economic stimulus package of SBD309 million (about 2.5% of GDP), to be financed by both government and donors. The package aims to provide social assistance to vulnerable households and firms, as well as supporting economic recovery. These includes employment support for youth and women and advancing planned infrastructure investments; (ix) May 26, The Prime Minister made a statement that the stimulus package costs SBD319 million. Amount will be updated once verified; (x) No amount/estimate: June 15, The cabinet revoked the decision on half pay for non-essential public servants that started on March 31. Any salary that was withheld will be repaid when officers are recalled to duty [update].

06 - Budget reallocation info_outline
07 - Central bank financing government
07A - Direct lending & reserve drawdown
07B - Secondary purchase: government securities

No amount/estimate: May, The central bank is prepared to support the government's stimulus package with planned pruchases of government bonds in the secondary market.

08 - International Assistance Received SBD294,341,394 USD35,881,520
08A - Swaps info_outline
08B - International loans/grants SBD294,341,394 USD35,881,520
08B1 - Asian Development Bank SBD57,422,031 USD7,000,000

(i) April, USD0.71 million - TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases; (ii) April 15, USD0.02 million TASF - REG: Strengthening Social Protection in the Pacific; (iii) April 22, USD6 million (USD3 million COL; and USD3 million ADF) - REG: Pacific Disaster Resilience Program (Phase 2); (iv) April 24, USD0.13 million TASF - REG: Developing the Pacific Health Sector (Additional Financing); (v) June 5, USD0.14 million TASF - REG: Pacific Economic Management, Phase 3 (Additional Financing) [update].

08B2 - Other SBD236,919,363 USD28,881,520

(i) April 14-Oct 13: IMF Catastrophe Containment And Relief Trust-Grant Assistance For Debt Service Relief, SDR59,428 (SDR0.729/USD); (ii) No amount/estimate: April 24, The government is receiving funds and medical supplies from several countries, including Australia, the People's Republic of China, New Zealand, and the United States, and development partners (including the World Bank) to support its COVID-19 response; (iii) April, USD0.3 million UN COVID-19 Response & Recovery Fund from UNDP; (iv) May 20, Australia will provide USD100 million financial support to 10 Pacific countries and AUD13 million has been allocated for Solomon; (v) June 1, IMF Executive Board approves a USD28.5 million disbursement to address the COVID-19 pandemic comprising SDR6.93 million (about USD9.5 million, 33.3% of quota) under the Rapid Credit Facility (RCF) and SDR13.87 million (about USD19 million, 66.7% of quota) under the Rapid Financing Instrument (RFI) to help cover urgent balance of payments needs stemming from the COVID-19 pandemic.

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown
11 - Other Economic Measures

i) April 26, The government issued its first covid-19 domestic development bond of SBD120 million to finance its COVID-19 economic stimulus package; (ii) May, To stimulate medium to long-term growth, the COVID-19 Bond will finance essential public services like health and education.

12 - Non-Economic Measures

April: (i) The government has implemented measures to prevent the entry of COVID-19 including suspension of all international flights until July 15 (except for those carrying essential COVID-19 related cargo), no entry of noncitizens, and strict mandatory quarantine for all returning passengers; (ii) In addition, the government has declared a state of emergency, scaled down public services to essential services only and temporarily closed entertainment places, closing schools (most will resume on April 27; exam classes in low-risk areas will resume on May 18) and temporarily suspending some services, as well as restrict travel of its citizens to the capital, Honiara; (iii) The Prime Minister has ordered the restriction of small craft vessels to and from the common border between Solomon Islands and Papua New Guinea; (iv) April 8, The government announced an extension of the state of emergency for another 4 months ending on July 25, 2020; May: (v) May 8, The Prime Minister made the order to reopen business entities except for night clubs within the emergency zone, Honiara; (vi) May 11, The national carrier, Solomon Airlines announced the suspension of all international flights until July 15, but it will continue to operate government approved cargo and charter flights as needed [update]; (vii) On May 20, the emergency zones went into a mock lockdown for 36 hours to test their capabilities in case of future needs; (viii) May 25, all schools had reopened; (ix) May 26, after confirming its in-country COVID-19 testing capability, the government repatriated its stranded nationals from Australia, New Zealand, Vanuatu, and Fiji. More repatriation flights from these countries were scheduled for June (19 and 31) and July (1) [update].