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: 31 March 2020, 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) 23 July 2020, 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|
|02B1 - Interest rate reductions||
No amount/estimate: (i) 27 March 2020, The Reserve Bank of Vanuatu (RBV) cut its policy rate from 2.9% to 2.25%
|02B2 - Other policies to support long-term lending||
(i) 23 July 2020, 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) 27 March 2020, 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) 15 April 2020, 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 2 May 2020, it was estimated that the VNPF had paid out VUV1.5 billion in total.
|03B - Forbearance|
|04 - Equity support info_outline|
|05 - Health and income support||VUV4,400,000,000||USD37,392,708|
|05A - Health support||
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 - Income support||VUV4,400,000,000||USD37,392,708|
|05B1 - Tax and contribution deferrals and policy changes|
|05B2 - Tax and contribution rates reduction||
(i) 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.
|05B3 - Wage support and subsidies to individuals and households||
(i) Lights 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) Secondary school tuition fees are suspended for 2020.
|05B4 - Subsidies to business||VUV2,900,000,000||USD24,645,194||
(i) 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); (ii) 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); price-based subsidies if needed to support producers of copra, kava, cocoa and other commodities; (iii) No amount/estimate: Support to the transport sector to facilitate farmers’ access to major market centres such as Port Vila and Luganville.
|05B5 - Indirect income support|
|05B6 - No breakdown (income support)||VUV1,500,000,000||USD12,747,514||
(i) 31 March 2020, A first-stage fiscal package worth VUV4.4 billion (roughly 4.2% of GDP) was announced. It includes the measures as disaggregated above, with no complete breakdown on amount per measure. Amounts are presented when available.
|05C - No breakdown (health and income support)|
|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) 15 April 2020, USD0.02 million announced by the ADB as part of the Strengthening Social Protection in the Pacific program. On 24 July 2020, additional USD0.04 million co-financing under the same program; (ii) 24 April 2020, USD0.13 million allocated by the ADB as additional funding to Vanuatu under the Regional Project on Developing the Pacific Health Sector; (iii) 5 June 2020, USD0.14 million in financing under the Pacific Economic Management, Phase 3 project; (iv) 19 July 2020, 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) 24 July 2020, USD0.21 million under the regional project, Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3); (vi) 29 July 2020, USD1.5 million funding under the COVID-19 Emergency Response; (vii) 10 August 2020, 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) 12 August 2020, 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) 27 April 2020, 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) 14 May 2020, USD0.3 million in support from the United Nations Development Group from the UN COVID-19 Response & Recover fund; (iv) 20 May 2020, 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|
|12A - Measures affecting travel and transport (local and international)||
(i) 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); (ii) Domestic flights and ferries resumed on 11 April 2020, also in response to the aftermath of TC Harold; (iii) From 12 May 2020, international flights and vessels carrying international relief supplies or cargo can enter, provided they comply with Vanuatu’s COVID-19 prevention and containment measures
|12B - Measures affecting business and workplace||
(i) Established curfews for businesses and transport, but not essential medical and communication services.
|12C - Others||
(i) 26 March 2020, a national State of Emergency (SOE) was declared for a two-week period, which was extended for a 30-day period on 11 April 2020 and then again on 11 May 2020, 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 6-7 April 2020; (ii) Quarantine and self isolation measures; (iii) Closed all schools until further notice; (iv) Banned gatherings of more than 5 people (suspended temporarily as of 5 April 2020 to allow for group sheltering caused by TC Harold and its aftermath); (v) Ecouraging social distancing; (vi) All public schools reopened on 18 May 2020; (vii) From 3 June 2020, the government began repatriation of its citizens and residents stranded abroad after strengthening in-country COVID-19 screening, testing and containment measures; (viii) The second phase of government’s repatriation plan has resumed in August and is expected to continue until December 2020; (ix) 18 September 2020, the Government confirmed that targeted testing repatriates from in quarantine for COVID-19 is being conducted as an additional precaution for those entering Vanuatu from areas classified as high risk countries.