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|
|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||
(i) July 23, the RBV reactivated the Imports Substitution and Export Finance Facility (ISEFF) which aims to assist in improving Vanuatu’s balance of payment. Under the facilities, domestic lending institutions/commercial banks can obtain low cost back-to-back loan/credit from the RBV for the purpose of on-lending to eligible exporters and businesses catering for import substitution.
|02B - Support policies for long-term lending info_outline||
No amount/estimate: (i) March 27, The Reserve Bank of Vanuatu (RBV) cut its policy rate from 2.9% to 2.25%; (ii) July 23, the RBV reduced commercial banks’ Capital Adequacy Ratio (CAR) from 12.0% to 10.0%.
|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 12% to the employer, with payments totalling VUV2.5 billion, which is already reflected in the VUV4.4 billion amount). September 9, The Government announced that the ESP will end on September 15; [update] (iv) small and medium enterprises (SME) with turnover of less than VUV200 million will also receive the value of their business license fees (around VUV400 million in total); (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||VUV2,581,845,877||USD21,941,411|
|08A - Swaps info_outline|
|08B - International loans/grants||VUV2,581,845,877||USD21,941,411|
|08B1 - Asian Development Bank||VUV395,371,200||USD3,360,000||
(i) April 15, USD0.02 million announced by the ADB as part of the Strengthening Social Protection in the Pacific program. On July 24, additional USD0.04 million co-financing under the same 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) June 5, USD0.14 million in financing under the Pacific Economic Management, Phase 3 project; (iv) July 19, USD0.9 million allocation under TA9950-REG: Regional Support to Address the Outbreak of Coronavirus Disease 2019 and Potential Outbreaks of Other Communicable Diseases; (v) July 24, USD0.21 million under the regional project, Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3); (vi) July 29, USD1.5 million funding under the COVID-19 Emergency Response; (vii) August 10, USD0.35 million under the regional project, Knowledge and Support Technical Assistance for Strengthening Water, Sanitation, and Hygiene Practices and Hygiene Behavioral Change in the Pacific; (viii) August 12, USD0.11 million under the regional project, Support for Gender Sensitive Responses to COVID-19 in the Pacific Developing Member Countries.
|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.