Pacific

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 50
% of GDP (2019): 5.53%
% of Regional Total Package: 2.02%
Package Per Capita in USD: 171.31
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
01C - Forex operations info_outline

No amount/estimate: March 31, The Reserve Bank of Vanuatu maintains an official foreign exchange reserves above a minimum threshold of 4 months of import cover.

02 - Credit creation info_outline
02A - Financial sector lending/funding info_outline
02B - Support policies for long-term lending info_outline

No amount/estimate: March 27, The Reserve Bank of Vanuatu cut its policy rate from 2.9% to 2.25%.

02C - Loan guarantees
03 - Direct long-term lending info_outline VUV1,500,000,000 USD12,747,514
03A - Long-term lending info_outline VUV1,500,000,000 USD12,747,514

(i) March 27, the Vanuatu National Provident Fund (VNPF) offered a VUV800 million worth of Hardship Loans, an interest-free withdrawal from a member’s account for 6 months of up to VUV100,000, after which the member either choses a repayment plan with interest or permanently withdraws the funds with a penalty, to approximately 15,000 members; (ii) April 15, It was estimated that about VUV1.2 billion (about USD10.4 million) would be released to up to 20,000 members; (iii) By the time the Hardship Loan facility closed on May 2, it was estimated that the VNPF had paid out VUV1.5 billion in total.

03B - Forbearance
04 - Equity support info_outline
05 - Government support to income/revenue VUV4,400,000,000 USD37,392,708
05A - Health

No amount/estimate: (i) The government, using its existing budget envelope with help from Australia, the People's Republic of China (PRC), New Zealand, UNICEF, WHO, other NGOs/CSOs and some local businesses, is (a) expanding health facilities; (b) restocking personal protective equipment and supplies; and (c) further training healthcare workers, especially in Port Vila; and (d) spending on community education and awareness; (ii) With the assistance of Australia, France, and New Zealand, COVID-19 tests are analyzed in the French special collectivity of New Caledonia as needed.

05B - Non-health VUV4,400,000,000 USD37,392,708

March 31, A first-stage fiscal package worth VUV4.4 billion (roughly 4.2% of GDP) was announced. It includes (i) flights and cover arrival and short-term quarantine costs in Port Vila of repatriated ni-Vanuatu before they return to their homes elsewhere in Vanuatu; (ii) deferred and cancelled taxes, license fees and charges for businesses in 2020. Backdating to start of 2020 some reductions resulting from forthcoming business license reforms; (iii) the Employment Stabilization Payment (reimbursing employers up to VUV30,000 per employee per month for 4 months; plus an additional 15% to the employer); (iv) small and medium enterprises (SME) with turnover of less than VUV200 million will also receive the value of their business license fees; (v) price-based subsidies if needed to support producers of copra, kava, cocoa and other commodities; (vi) support to the transport sector to facilitate farmers’ access to major market centres such as Port Vila and Luganville; and (vii) secondary school tuition fees are suspended for 2020.

06 - Budget reallocation info_outline
07 - Central bank financing government
07A - Direct lending & reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received VUV2,304,144,677 USD19,581,411
08A - Swaps info_outline
08B - International loans/grants VUV2,304,144,677 USD19,581,411
08B1 - Asian Development Bank VUV117,670,000 USD1,000,000

(i) April 15, USD0.02 million announced by the ADB as part of the Strengthening Social Protection in the Pacific program; (ii) April 24, USD0.13 million allocated by the ADB as additional funding to Vanuatu under the Regional Project on Developing the Pacific Health Sector; (iii) USD0.71 million allocation for TA9950-REG: Regional Support to Address the Outbreak of Coronavirus Disease 2019 and Potential Outbreaks of Other Communicable Diseases; (iv) June 5, USD0.14 million in financing under the Pacific Economic Management, Phase 3 project. [update]

08B2 - Other VUV2,186,474,677 USD18,581,411

No amount/estimate: (i) With help from Australia, The PRC, New Zealand, UNICEF, WHO, other NGOs/CSOs and some local businesses, Vanuatu is expanding health facilities, restocking personal protective equipment and supplies, and further training healthcare workers, especially in Port Vila; and spending on community education and awareness; (ii) With the assistance of Australia, France and New Zealand, COVID-19 tests are analyzed in the French special collectivity of New Caledonia as needed; (iii) April 27, The World Bank has delivered USD10 million (VUV1.2 billion) in emergency funding to Vanuatu to support the country’s response to the combined impacts of the global COVID-19 (coronavirus) pandemic and Tropical Cyclone Harold; (iv) May 14, USD0.3 million in support from the United Nations Development Group from the UN COVID-19 Response & Recover fund; (iv) May 20, AUD13 million in quick financial support from Australia to support Pacific countries hit by both the recent cyclone and pandemic.

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

(i) March 26, a national State of Emergency (SOE) was declared for a two-week period, which was extended for a 30-day period on April 11 and then again on May 11, for the dual purposes of continuing COVID-19 prevention and containment measures as well as responding to Tropical Cyclone (TC) Harold which impacted Vanuatu on April 6-7; (ii) Quarantine and self isolation measures; (iii) Closed all ports of entry for international flights and cruise ships; (iv) The government has (a) closed all ports of entry for international flights and cruise ships; (b) suspended departures for seasonal worker programs to Australia and New Zealand (with optional repatriation of workers already abroad); (c) closed all schools until further notice; (d) established curfews for businesses and transport, but not essential medical and communication services; (e) banned gatherings of more than 5 people (suspended temporarily as of April 5 to allow for group sheltering caused by TC Harold and its aftermath); and (f) been encouraging social distancing; (v) Tourism, which contributes 24.6% of Vanuatu’s GDP, has effectively ceased.