Other Economies

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 23,831.48
% of GDP (2019): 7.72%
% of Regional Total Package: N/A
Package Per Capita in USD: 406.97
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 ZAR300,000,000 USD18,076,977
01A - Short-term lending info_outline ZAR300,000,000 USD18,076,977

(i) No amount/estimate: 20 March 2020, (a) SARB increased the number of repo auctions to two to provide intraday liquidity support to clearing banks at the policy rate; (b) raised the size of the main weekly refinancing operations as needed; (ii) No amount/estimate: 25 March 2020, SARB announced that main refinancing operations will be offered for periods of 7 days to longer-term maturities of up to 12 month; (iii) No amount/estimate: 11 May 2020, Reduced frequency of Intraday Overnight Supplementary Repurchase Operations (IOSROs) from two per day to one per day; (iv) 24 June 2020, ZAR300 million Covid-19 Small Industrial Finance Fund to assist Industrial Development Corporation by offering concessionary finance to cover short-term operations.

01B - Support policies for short-term lending info_outline

No amount/estimate: 28 March 2020, reduced the liquidity coverage ratio from 100% to 80% to provide additional liquidity and counter financial system risks.

01C - Forex operations info_outline

No amount/estimate: SARB announced it will continue its longstanding practice of not intervening in the foreign exchange market.

02 - Credit creation info_outline ZAR200,000,000,000 USD12,051,318,128
02A - Financial sector lending/funding info_outline
02B - Support policies for long-term lending info_outline
02B1 - Interest rate reductions

(i) No amount/estimate: 19 March 2020, SARB reduced policy rate by 100bps to 5.25%, (ii) 14 April 2002, policy rate reduced further to 4.25%; (iii) 22 May 2020, cut the repo rate by 50 basis points to 3.75% per annum.

02B2 - Other policies to support long-term lending

(i) No amount/estimate: 28 March 2020, SARB announced temporary relief on bank capital requirements; (ii) No amount/estimate: 6 April 2020, SARB issued guidance on dividend and cash bonuses distribution to ensure bank capital preservation; (ii) no amount/estimate: SARB directed that loans restructured as a result of the impact of COVID-19 will not attract a higher capital charge; (vii) no amount/estimate: reduced the upper and lower limits of the standing facility to lend at repo-rate and borrow at repo-rate less 200bps; (iv) No amount/estimate: SARB announced that it will handle, on a case-by-case basis, co-operative financial institutions and co-operative banks contravention of prudentials measures including capital adequacy, loan delinquency ratio, loan provisioning requirements, external credit, non-earning assets to total assets ratio, and loan at default window.

02C - Loan guarantees ZAR200,000,000,000 USD12,051,318,128

(i) 21 April 2020, ZAR200 billion loan guarantee scheme that will assist enterprises with operational costs, such as salaries, rent and the payment of suppliers; (ii) No amount/estimate: 26 July 2020, updates on Covid-19 Loan Guarantee Scheme, loosened restrictions on eligibility and extending the draw-down period for current participants.

03 - Direct long-term lending info_outline ZAR3,000,000,000 USD180,769,772
03A - Long-term lending info_outline ZAR3,000,000,000 USD180,769,772

ZAR3 billion for industrial funding to address the situation of vulnerable firms and to fast-track financing for companies.

03B - Forbearance

No amount/estimate: 26 March 2020, SARB issued guidelines on modalities to provide debt relief to bank customers.

04 - Equity support info_outline
05 - Health and income support ZAR192,200,000,000 USD11,581,316,721
05A - Health support ZAR20,000,000,000 USD1,205,131,813

(i) ZAR20 billion to health response through the provision of treatment, additional expenditure on personal protective equipment for health workers, community screening, an increase in testing capacity, additional beds in field hospitals, ventilators, medicine and staffing; (ii) No amount/estimate: 7 January 2021,medical schemes to fund COVID-19 vaccines for 30% of adults. [update]

05B - Income support ZAR172,200,000,000 USD10,376,184,908
05B1 - Tax and contribution deferrals and policy changes
05B2 - Tax and contribution rates reduction

(i) No amount/estimate: introduced a four-month holiday for companies’ skills development levy contributions; (ii) No amount/estimate: fast-tracking VAT refund and three-month delay for filing and first payment of carbon tax; (iii) No amount/estimate: increased previous turnover threshold for tax deferrals to ZAR100 million a year; (iv) No amount/estimate: issued a list of essential goods for a full rebate of customs duty and import VAT exemption; (v) No amount/estimate: a tax subsidy of up to ZAR500 per month for the next four months for those private sector employees earning below ZAR6,500;

05B3 - Wage support and subsidies to individuals and households ZAR50,000,000,000 USD3,012,829,532

ZAR50 billion to temporarily increase child support grant for six month.

05B4 - Subsidies to business ZAR2,200,000,000 USD132,564,499

(i) ZAR2 billion to support SMMEs and spaza shop owners; (ii) ZAR200 million available to assist SMEs in the tourism and hospitality sector.

05B5 - Indirect income support ZAR20,000,000,000 USD1,205,131,813

(i) ZAR20 billion allocated to municipalities for the provision of emergency water supply, increased sanitisation of public transport and facilities, and providing food and shelter for the homeless; (ii) No amount/estimate: 21 October 2020, announced Economic Reconstruction and Recovery Plan focused on infrastructure, mass employment, energy security and digital transformation.

05B6 - No breakdown (income support) ZAR100,000,000,000 USD6,025,659,064

ZAR100 billion for job protection and creation.

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

No amount/estimate: SARB announced a program to purchase government securities in the secondary market across the entire yield curve.

08 - International Assistance Received ZAR71,405,664,911 USD4,302,661,920
08A - Swaps info_outline
08B - International loans/grants ZAR71,405,664,911 USD4,302,661,920
08B1 - Asian Development Bank
08B2 - Other ZAR71,405,664,911 USD4,302,661,920

(i) 27 July 27 2020, IMF approves USD4.3 Billion in Emergency Support to South Africa to address the COVID-19 Pandemic. [update] (ii) 15 September 2020, GBP2.15 million grant from the UK for the Solidarity Fund as response to the COVID-19 pandemic to support projects to recover from the pandemic, focused on supporting women.

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

(i) Relaxed regulations for insurers; (ii) SARB extended prudential and related supervisory reporting requirements; (iii) commercial banks exempted from provisions of the Competition Act to enable them to develop common approaches to debt relief; (iv) SARB temporarily extended the submission for the quarterly returns for the 2020 financial year by one month; (v) 10 June 2020, Temporarily suspended the issuance of all new insurance licences for a period of six months.

12 - Non-Economic Measures
12A - Measures affecting travel and transport (local and international)

(i) 15 March 2020, nationwide lockdown announced; (ii) travel ban of foreign nationals from high-risk countries; (iii) screening at ports of entry; (iv) Effective 1 June 2020, further relaxation of the lockdown was announced.

12B - Measures affecting business and workplace
12C - Others

(i) 15 March 2020, national state of disaster declared; (ii) school closures; (iii) screening visits to homes; (iv) introduction of mobile technology to track and trace contacts of those infected; (v) banning of large gatherings.