Other ADB Members
Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline||GBP23,867,813,690||USD29,550,794,375|
|01A - Short-term lending info_outline||GBP11,385,000,000||USD14,095,794,375||
(i) March, Activating a Contingent Term Repo Facility (CTRF) to complement the Bank of England’s (BoE's) existing sterling liquidity facilities. June 19, The Bank of England announced that, in light of more stable funding market conditions and recent usage patterns, it will discontinue 3-month CTRF operations at the end of June 2020. The final operation is scheduled on 26 June [update]. As of June 12, cumulative amount allocated since March was GBP11.385 billion; (ii) March 17, The Covid Corporate Financing Facility (CCFF) provided jointly with the Treasury provides lending to businesses with minimum amount GBP1 million per participant. The BoE will purchase commercial papers (CP) of firms of up to one-year maturity, with interest rate set with a fixed spread to the sterling overnight index swap (OIS) rate. The spread is determined based on rating or equivalent assessment. The scheme will operate for at least 12 months and will be financed by the issuance of central bank reserves. As of June 17, the sum of CP purchased less any redemptions and sales (reported on a settlement date basis), since the CCFF began in March 2020 was GBP17.759 billion, while nominal sum of CCFF drawing capacity of businesses approved for CCFF issuance was GBP73.145 billion [update]. Total allocation for CCFF is under No Breakdown in Measure 10.
|01B - Support policies for short-term lending info_outline||
No amount/estimate:(ii) April, The Prudential Regulatory Authority (PRA) set out supervisory expectation that banks should suspend dividends and buybacks until end-2020, cancel outstanding 2019 dividends and pay no cash bonuses to senior staff.
|01C - Forex operations info_outline||GBP12,482,813,690||USD15,455,000,000||
The peak total amount in the US dollar repo operations from March 18-June 24 was recorded in March 18, with 2 transactions, 7-day & 84-day terms, at USD15.455 billion. June 19, The Bank of England, in co-ordination with other central banks, has decided to reduce the frequency of 7-day maturity operations which provide liquidity via the standing US dollar liquidity swap line arrangements. The frequency of 7-day US dollar repo operations will be reduced from daily to three times per week commencing 1 July 2020 (update).
|02 - Credit creation info_outline||GBP100,000,000,000||USD123,810,227,273|
|02A - Financial sector lending/funding info_outline||GBP100,000,000,000||USD123,810,227,273||
March 11, Introducing a new Term Funding scheme with additional incentives for Small and Medium-sized Enterprises (TFSME), financed by the issuance of central bank reserves. The Term Funding Scheme offers four-year funding at or very close to the Bank Rate. Estimated size of the scheme is GBP100 billion. As of June 17, current loans made through the Term Funding Scheme with additional incentives for SMEs was GBP12.435 billion [update].
|02B - Support policies for long-term lending info_outline||
No amount/estimate: (i) Policy rate reductions: From 0.75% to 0.1% in two steps on 11 and 19 March; (ii) April, reducing the UK countercyclical buffer rate to 0% from a pre-existing path toward 2% by December 2020, with guidance that it will remain there for at least 12 months; (iii) May 4, The Prudential Regulation Authority (PRA) is offering a modification by consent for banks subject to the UK Leverage Ratio Part of the PRA Rulebook to exclude loans under the Covid-19 Bounce Back Loan scheme (BBLS) from the leverage ratio total exposure measure, if they choose to do so; (iv) May 7, the PRA announced its intention to alleviate unwarranted pressure on firms by setting all Pillar 2A requirements as a nominal amount, instead of a percentage of total Risk Weighted Assets (RWAs). As well as avoiding an absolute increase in Pillar 2A capital requirements in the current stress, this would reduce Pillar 2A, as well as the threshold at which firms are subject to maximum distributable amount (MDA) restrictions, as a share of a firm’s RWAs in the capital stack if RWAs increase; (v) May 7, The dates for the major UK banks and building societies to submit their first reports on their preparations for resolution and publicly disclose a summary of these reports have been extended by a year. These firms will now be required to submit their first reports to the PRA by October 2021 and make public disclosures by June 2022; (vi) June 4, the Bank of England informs all regulated UK Financial Market Infrastructures and Specified Providers that when considering any distribution of shareholders or making decisions on variable remuneration they should pay close attention to the additional risks and potential financial and operational demands due to COVID-19, and that they should discuss with the BOE in advance of making any distribution to shareholders.
|02C - Loan guarantees||
(i) March, The Coronavirus Business Interruption Loan Scheme (CBILS) provides support to smaller businesses, with financing up to GBP5 million, wherein the government will provide the lender a partial guarantee (80%). As of 31 May, GBP8.9 billion had been approved under; (ii) March, The Coronavirus Large Business Interruption Loan Scheme (CLBILS) will provide a government guarantee of 80% to enable banks to make loans of up to GBP25 million to larger firms with an annual turnover of between GBP45 million and GBP500 million (This measure's estimated amount is categorized under Measure 10). May 19, Extended maximum loan size available through the CLBILS from GBP50 million to GBP200 million. Companies receiving help through the CLBILS were also asked to agree to not pay dividends and to exercise restraint on senior pay. As of 31 May, GBP1.1 billion had been approved under under CLBILS; (ii) May 4, Bounce Back Loan Scheme (BBLS) is launched to help small firms get finance, with a 100% government-backed guarantee. As of May 31, GBP21.3 billion had been approved under BBLS, covering nearly 700,000 loans.
|03 - Direct long-term lending info_outline||GBP250,000,000||USD309,525,568|
|03A - Long-term lending info_outline||GBP250,000,000||USD309,525,568||
(i) March 17: Temporary state loans and guarantee scheme for businesses will be provided through the Coronavirus Business Interruption Loan Scheme (CBILS). CBILS will provide loans of up to GBP5 million for small and medium-sized businesses (this measure's estimated amount is categorized under Measure 10); (ii) May 20, Future Fund is launched. To bolster high-tech start-ups, the new GBP500 million Future Fund provides between GBP125,000 and GBP5 million for UK based-business as long as the cash is matched by private investors (i.e. government is committing GBP250 million, with the other GBP250 million expected to be raised by the private sector). The scheme is initially open until September and will be delivered by the British Business Bank. If the government loan is not repaid within three years, it gets automatically converted into an equity stake at 20% discount to the valuation set in the next funding round.
|03B - Forbearance||
No amount/estimate: April 9, The Financial Conduct Authority (FCA) introduced a package of targeted temporary measures to support customers affected by coronavirus, including by setting the expectation for firms to offer a payment freeze on loans and credit cards for up to three months.
|04 - Equity support info_outline|
|05 - Government support to income/revenue||GBP156,792,000,000||USD194,124,531,545|
|05A - Health||GBP10,084,000,000||USD12,485,023,318||
(i) April, GBP10 billion for the National Health Service (NHS) and other public services to tackle the virus; (ii) May 17, UK’s top researchers rapidly working to find a coronavirus vaccine will benefit from GBP84 million of new government funding.
|05B - Non-health||GBP146,708,000,000||USD181,639,508,227||
(i) March 20, VAT payments of around GBP30 billion for the second quarter of 2020 are deferred until 2021; (ii) April: (a) Employment support: Coronavirus Job Retention Scheme (GBP42 billion; as of June 4, estimate was GBP54 billion), Self-employed income support scheme (GBP10 billion; as of June 4, estimate was GBP15 billion) (b) Household Support: Statutory sick pay support (GBP1 billion), Welfare package (GBP7 billion; as of June 4, estimate was GBP8 billion), Local authority funding to support vulnerable people (GBP0.5 billion); Suspending benefit recovery (no amount yet); (c) Business support: Small business grant schemes (GBP15 billion), Business rates package (GBP13 billion), Off-payroll working delay extension to private sector by 1 year (GBP1.2 billion), VAT on e-publications - early introduction (GBP0.1 billion, June 4); (d) Funds for devolved administrations (GBP3.5 billion = GBP1.6 billion local + GBP1 billion Scotland + GBP0.6 billion Wales + GBP0.3 billion Northern Ireland.); (f) Railway services operation (GBP3.5 billion); (iii) Apri 8, Charities across the UK will receive a GBP750 million package of support to ensure they can continue their vital work during the coronavirus outbreak; (iv) May 23, GBP15 million to support the Citizens Advice Service during COVID-19 pandemic (advice and information on a range of financial, legal, and consumer issues); (v) May 29, the Self-Employment Support Scheme is extended until August, but government contribution will be slowly tapered from 80% of the salary in June to August to 70% in September and 60% in October; (vi) June 9, GBP38 million support package for debt advice providers so they can continue helping people affected by COVID. The Money and Pensions Service will oversee the allocation of the funds, including to charities, for debt advice, and other money guidance services [update]; (vii) June 19, Schools will receive GBP1 billion to help pupils catch up after coronavirus and provide for a national tutoring program for disadvantaged students hit most by school closures [update]; (viii) June 24, GBP105 million to keep 15,000 vulnerable people off the streets during coronavirus pandemic [update].
|06 - Budget reallocation info_outline|
|07 - Central bank financing government||GBP304,370,000,000||USD376,841,188,750|
|07A - Direct lending & reserve drawdown||GBP4,370,000,000||USD5,410,506,932||
(i) April 9, HM Treasury and the BoE announced temporary extension to Ways and Means (W&M) facility. As of May 13, drawings under the W&M facility remain at GBP370 million; (ii) April 2020, There was a GBP4.0 billion dividend transfer from the Bank of England Asset Purchase Facility Fund (BEAPFF) to HM Treasury.
|07B - Secondary purchase: government securities||GBP300,000,000,000||USD371,430,681,818||
March 19, Increase BoE's holdings of UKG government and corporate bonds by GBP200 billion to a total of GBP645 billion, financed by central bank reserves. June 17, Current gilt purchases stood at GBP596.989 billion [update]. June 18, The Bank of England announced an increase in the stock of purchases of UK government bonds, financed by central bank reserves, by an additional GBP100 billion, to take the total stock of asset purchases to GBP745 billion [update].
|08 - International Assistance Received||GBP30,449,827,272||USD37,700,000,350|
|08A - Swaps info_outline||GBP30,449,827,272||USD37,700,000,350||
Unlimited USD liquidity swap line with the US Federal Reserve: peak amount outstanding was recorded in April 2: USD37.7 billion.
|08B - International loans/grants|
|08B1 - Asian Development Bank|
|08B2 - Other|
|09 - International Assistance Provided||GBP150,000,000||USD185,715,341|
|09A - Swaps info_outline|
|09B - International loans/grants||GBP150,000,000||USD185,715,341||
United Kingdom as donor-country: The government has made available GBP150 million to the IMF’s Catastrophe Containment and Relief Trust.
|10 - No breakdown||GBP330,750,000,000||USD409,502,326,705||
(i) March, GBP330 billion of temporary state loans and guarantee scheme for businesses. This includes the Coronavirus Corporate Financing Facility (CCFF) (20 March) and the Coronavirus Business Interruption Loan Scheme (CBILS) (17 March). CBILS will provide loans of up to GBP5 million for small and medium-sized businesses (see reference in Measure 3). In addition, the Coronavirus Large Business Interruption Loan Scheme (CLBILS) will provide a government guarantee of 80% to enable banks to make loans of up to GBP25 million to larger firms with an annual turnover of between GBP45 million and GBP500 million (3 March) (see reference in Measure 2); (ii) April 20, GBP1.25 billion support package to protect firms driving innovation in the UK, of which: (a) Treasury will dedicate GBP750 million to grants and loan support for SMEs to perform research and development, of which GBP500 million is for high-growth firms, called the Future Fund, reported in Measure 3A; (b) Innovate UK (national innovation agency) will administer GBP200 million of grant and loan payments through its existing list of customers on an opt-in basis; (c) The remaining GBP550 million will increase support for existing customers and firms not yet involved with Innovate UK funding. The first payments will be made by mid-May. On 20 May, GBP40 million was allocated to this package to support the UK’s Fast Start Competition, to fast-track development of innovations.
|11 - Other Economic Measures||
(i) The Financial Conduct Authority (FCA) introduced a package of targeted temporary measures to support customers affected by coronavirus, including by setting the expectation for firms to offer a payment freeze on loans and credit cards for up to three months; (ii) June 6, The government extended ban on evicting tenants from social or private accomodation in England and Wales by two months to August 23 due to the COVID outbreak; (iii) June 5, The Corporate Insolvency and Governance Bill has been proposed to introduce new corporate restructuring tools to the insolvency and restructuring regime, temporarily suspend parts of the insolvency law, and to amend Company Law and other legislation [update]; (iv) June 9, People on paternity and maternity leave who return to work in the coming months will be eligible for the government's furlough scheme, the Coronavirus Job Retention Scheme (CJRS), after the June 10, 2020 cut-off date [update].
|12 - Non-Economic Measures||
(i) Economy-wide lockdown since 23 March; (ii) The government advised British tourists currently abroad to return to the country, and advised against all non-essential travel worldwide. The warning is in place initially for 30 days; (iii) 16 March, Schools are closed except for children of key workers ; (iv) Social distancing is in place. A ban is in place on all social events and gatherings; (v) May 11, The government announced that primary schools will reopen on 1 June; (vi) May 11, The government announced that outdoor places will reopen on May 13 and that people can exercise more than once a day. Social distancing measures remain in place. Ban on public events and social gatherings remains in place; (vii) May 11,The government announced its opening strategy. In a first phase, sectors that were closed during the lockdown can reopen again on 13 May, except entertainment, hospitality, and non-essential retail. All workers who cannot work from home should travel to work if their workplace is open. If the health situation remains under control, a second phase would see the reopening of non-essential retailers on 1 June, followed by the hospitality and entertainment sectors on 4 July; (viii) June 15, Non-essential stores/retailers are allowed to reopen; (ix) June 23, the government easing of lockdown restrictions, which includes opening of pubs, restaurants, and accomodation sites starting July 4, provided they adhere to COVID Secure guidelines [update].