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: 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; (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.
|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; On September 15, CBSI has resolved to maintain its expansionary monetary policy for the next six months [update]; (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.
|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; (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; (xi) No amount/estimate: June 16, The government has provided price subsidies for copra and cocoa as part of the stimulus package to encourage local farmers to produce more and benefit from the subsidy scheme.
|06 - Budget reallocation info_outline||
April 25, The government has reallocated SBD156 million in previously budgeted spending to fund the COVID-19 preparedness and response plan.
|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||SBD495,056,003||USD60,349,520|
|08A - Swaps info_outline|
|08B - International loans/grants||SBD495,056,003||USD60,349,520|
|08B1 - Asian Development Bank||SBD246,094,420||USD30,000,000||
(i) April, USD1.85 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); (vi) June 24, USD20 million (USD10 million COL, USD10 million ADF) COVID-19 Rapid Response Program; (vii) No amount/estimate: July 24, USD0.04 million cofinanced amount under Strengthening Social Protection in the Pacific (Additional financing); (viii) July 29, USD1.5 million COVID-19 Emergency Response under the Asia Pacific Disaster Response Fund; (ix) August 10, USD0.25 million TASF - Knowledge and Support Technical Assistance for Strengthening Water, Sanitation, and Hygiene Practices and Hygiene Behavioral Change in the Pacific; (x) August 12, USD0.11 million TASF - Support for Gender Sensitive Responses to COVID-19 in the Pacific Developing Member Countries.
|08B2 - Other||SBD248,961,583||USD30,349,520||
(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; (vi) August 6, UNICEF Solomon Islands welcomes a USD0.347 million funding from the Government of Japan to boost ongoing COVID-19 preparedness efforts; (vii) August 20, The Government of Australia was pleased to provide SBD1 million (USD0.122 million) to the Ministry of Health and Medical Services for five new medical ventilators as part of its broader support to Solomon Islands’ COVID-19 preparedness and response; (viii) August 25, The Ministry of Agriculture and Livestock (MAL) through the Livelihood Sector Committee (LSC), signed two project funding agreements with the UN Food and Agricultural Organization for a total amount of USD0.999 million (approximately SBD8 million) [update]; (ix) August 31, The European Union and the Government of Solomon Islands have signed a new Financing Agreement, which will provide EUR8 million or nearly SBD78 million to improve the efficiency of the response to the COVID-19 crisis, especially in the key sectors of health and education.
|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 (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 until November, 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. On June 11, it announced the suspension of all international flights until August 31. On July 29, it extended the suspension of all international flights until October 24, but it will continue to operate government approved cargo and charter flights as needed; (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 on June (19 and 31) and July (1); On July 13, The government announced two more repatriation flights scheduled on July 21 and 23.