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 adjustments||
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 - 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 businesses||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 (over 4% 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 and reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||VUV3,129,011,377||USD26,591,411|
|08A - Swaps info_outline|
|08B - International loans/grants||VUV3,129,011,377||USD26,591,411|
|08B1 - Asian Development Bank||VUV942,536,700||USD8,010,000||
(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. As of 30 January 2021, this has been increased to USD1.04 million. As of 8 October 2021, this has again been increased to USD1.1 million; (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; (ix) 17 December 2020, USD0.35 million from the regional project, Supporting Recovery by Micro, Small and Medium-sized Enterprises in the Pacific from the Effects of the COVID-19 Pandemic; (x) 23 April 2021, USD3.88 million from the regional project, Systems Strengthening for Effective Coverage of New Vaccines in the Pacific Project under the Asia Pacific Vaccine Access Facility (Additional Financing). This has been approved on 7 June 2021; (xi) 7 September 2021, USD0.16 million in funidng under the ADB regional project, Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 4); (xii) 22 September 2021, USD0.06 million in funding through the ADB regional project, Fostering Regional Cooperation and Integration through Knowledge and Capacity Building of Trade and Supply Chain Finance Program Banks.
|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; (v) 7 June 2021, The first batch of Sinopharm COVID-19 vaccines donated by the Chinese government has arrived in the capital of Vanuatu; (vi) 13 July 2021, Japan has announced that it will provide a total of 11 million vaccines to recepient countries, including Vanuatu.
|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.