Pacific

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 50.14
% of GDP (2019): 5.53%
% of Regional Total Package: 1.96%
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

(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.