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Monetary Fiscal Last Updated: Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other July 21 IMF NA NA • The IMF has allocated SDR of 60.4 billion to 77 countries, spread across five continents. The SDRs primarily consist of rapid financing instruments and rapid credit facilities; a small number are flexible credit lines or other special arrangements. • The Catastrophe Containment and Relief Trust has been used to finance debt relief grants for 27 countries struggling to finance their pandemic response under their international debt obligations. This totals SDR177.65 million. • The Short-term Liquidity Line has been established as a renewable backstop for countries in need of short-term BoP support. • On March 25, the IMF (and World Bank) called on bilateral creditors to suspend debt service payments from the poorest countries. G20 NA • Finance ministers met on March • Working with international • On April 15, the G20 responded • Pledged to resolve disruptions to 31 to coordinate COVID-19 response organizations to deliver appropriate to the IMF’s call by suspending global supply chains, ensuring the efforts. financial assistance to emerging and debt service payments from the movement of vital medical • Welcomed the World Bank to developing markets. poorest countries. supplies, agricultural products, and deploy USD160 billion over the next other essential goods and services. 15 months to support the financial stability and liquidity needs of its member nations. • Assessing the risk of debt vulnerabilities in low-income countries. • Another virtual meeting is set to take place on April 15. • An action plan to highlight medium-term measures to support the global economy.
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Monetary Fiscal Last Updated: Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other July 21 United States • On March 3, the FOMC lowered • March 12: Made USD1.5 trillion • On March 6, Congress appropriated The March 27 CARES Act includes: • On March 18, the President the interest rate target range by 50 available for short-term interbank USD8.3 billion in emergency funding • USD500 billion in loans for large signed the Families First bps to 1.25% - 1.0%. lending. that includes USD6.5 billion for businesses. Coronavirus Response Act • On March 15, the FOMC cut the • March 15: Fed committed to federal, state and local health depts., • USD350billion in emergency (FFCRAA) requires employers of interest rate target range by 100 purchasing USD700 billion in U.S. up to USD600 million to subsidize grants and loan forgiveness less than 500 employees to provide bps to 0.25% - 0.0%. Treasury securities and mortgage- treatments, USD1.25 billion for programs for SMEs, also known as paid sick leave to employees • At the April 29 FOMC meeting, backed debt; on March 23, purchase international aid, USD20 million in the Paycheck Protection Program. specifically for COVID-19 related the target rate was maintained. limit was left open-ended in order to loans to firms. • All businesses receiving a loan reasons, and guarantees full • At the June 9 & 10 FOMC suppress borrowing costs • On March 27, the USD2.2 trillion under the program are banned insurance coverage of COVID-19 meeting, the target rate was indefinitely. CARES Act was signed by the from stock buybacks for the term testing. maintained. • March 15: Reduced reserve President. It includes USD150 billion of the loan plus one year; all loans, • Tax filing deadline for individuals • At the July 28 & 29 FOMC requirement to zero. for hospitals; USD1200 for each adult their terms and any investments or and businesses delayed two meeting, the target rate was • Activated dollar swap lines with making less than USD75,000/year and other assistance provided by the months to June 15. maintained. key DM central banks (including the smaller checks for those making government must be publicly • Under the CARES Act, payments ECB) and several EM central banks. more; USD500 for each child; disclosed; oversight for all of these on student loans have been • March 17: Fed launched a unemployment support extended to loans will be conducted by a deferred by six months. Commercial Paper Funding Facility four months and increased to a special inspector general and • Refundable tax credit for all to provide liquidity to businesses maximum of USD600/week. independent monitoring businesses to cover wages for and households. • A third relief package totaling committee. employees unable to work due to • March 17: Fed established a USD484 billion was passed the week • The third relief package provides the COVID-19 pandemic. Primary Dealer Credit Facility to of April 20. It includes USD75 billion an additional USD322 billion for • State of emergency allows states offer overnight and term funding to in funding for hospitals and USD25 the Paycheck Protection Program, to access federal funding. primary dealers. billion in funding for COVID-19 plus an additional USD60 billion for • March 17: A Primary Market testing. SME disaster loans and grants. In Corporate Credit Facility was • A fourth relief package was drafted Early May, the disaster loans created for new bond and loan and announced by House Democrats program was so overwhelmed that issuance; a Secondary Market the week of May 11 on the order of it began only accepting Corporate Credit Facility was USD3 trillion that would include state applications from agricultural created to provide liquidity for and local government assistance, businesses. outstanding corporate bonds. On guaranteed hazard pay and childcare June 15, the Fed announced that the benefits for essential workers, SMCCF would begin buying student loan debt relief, funding for corporate bonds. COVID-19 testing, more direct cash • March 18: Established a Money- payments to households, and much Market Mutual Fund Liquidity more. The package passed the House Facility to ensure redemptions from in mid-May, but is not expected to investors can be met and help advance, although Republicans have system liquidity. expressed openness to another round • March 31: Fed announced the of stimulus. creation of an international repo
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Monetary Fiscal Last Updated: Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other July 21 facility that will allow foreign central banks to obtain U.S. dollars overnight by exchanging their U.S. Treasury securities. At the July FOMC meeting, this facility was extended through March 2021 (originally September 2020). • Fed has established a Main Street Business Lending Program to support lending to SMEs. On June 8, the Fed announced it would expand eligibility for the program. • April 9: A Municipal Liquidity Facility will lend up to USD500 billion directly to state and local governments. On June 3, the number and type of entities eligible to use this facility was expanded. • On July 29, all lending facilities set to expire on September 30 were extended through December 31 2020.
Japan • Policy rates have so far been left • BoJ stepped up purchases to • On April 7, a JPY108 trillion package • First relief package on February • Tax deadline extended from Mid- untouched at 0% - -0.1%. USD112 billion of Japanese was announced, of which, JPY39.5 13 allocated JPY500 billion for low- March to Mid-April. • At the May 11 MPC meeting, no government bonds (JPY5.4 - JPY7.4 trillion is expected to be direct interest, collateral-free loans to • The April stimulus package will changes to interest rates were trillion) and other equities (JPY6 - spending. The package includes SMEs in the tourism and other include JPY26 trillion in tax announced. JPY12 trillion). JPY300,000 per household, JPY13.9 heavily impacted industries. payment moratoriums. • At the June 16 MPC meeting, BoJ • After the April 7 stimulus package billion to stock up on flu medicines, • On March 10, a second relief announced that it expects policy announcement, BoJ announced its subsidies of JPY1 trillion for local package was announced of JPY1 rates to remain at current levels. bond purchases would be stepped governments. The package will be trillion that expanded the loan • At the July 14 & 15 MPC meeting, up again by another JPY 16 trillion to paid for by a sale of JPY18 trillion in program of the February package, no changes to interest rates were JPY145 trillion. bonds. allowing any company with sales announced. • At the April 27 MPC meeting, BoJ • On April 17, a revision was made to down 5% or more YoY over the announced that it would step up CP the April 7 package: every individual previous month to be eligible. For and corporate bond purchases, in Japan will receive JPY100,000. This those who saw business decline strengthen and expand the activities change required a spending increase 10-20%, the government will pay of the Special-Funds Supplying of JPY8.8 trillion, which the the interest on the loans. Operations to Facilitate Financing in
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Monetary Fiscal Last Updated: Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other July 21 Response to the Novel Coronavirus, government hopes to finance through • April 7 package will allow SMEs increase purchases of Japanese the sale of JPY23 trillion in bonds. to borrow from private firms for government bonds and T-bills, and • On May 27, the government 0% interest. will actively purchase ETFs and J- announced another JPY117 trillion REITs. stimulus, JPY33 trillion of which will • At the May 11 MPC meeting, BoJ be direct spending on rent subsidies announced that it would purchase for households and SMEs, payments an amount of government bonds of JPY200,000 to frontline medical necessary to keep 10-year bond workers, and vaccine research. The yields at 0%. package will be financed by the • At May 22 MPC meeting, BoJ issuance of JPY31.9 trillion in announced the Special Program to government bonds. Support Financing in Response to • JPY10 trillion has been set aside for the Novel Coronavirus, which emergency spending in the event of a includes the CP and corporate bond second wave of infections. purchases and Special Funds Facility from the April MPC meeting, and measures for fund-provisioning against loans made by eligible counterparties. The total size of the Special Program is JPY75 trillion. • At the June 16 MPC meeting, BoJ announced an increase in the size of the Special Program by JPY35 trillion for a total of JPY110 trillion.
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Monetary Fiscal Last Updated: Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other July 21 EU/Euro Area • Lending volume and rates under • Launched an additional EUR120 • Eurogroup policy meeting March • Coordinated efforts at the • Commission has been the TLTRO III eased (25 bps cut) to billion under the Asset Purchase 16: EUR37 billion in "cohesion European level will supplement recommended to suspend the support SMEs and households. Programme to limit the tightening of resources" converted into a national measures (1% of GDP Stability and Growth Pact. • At the April 30 MPC meeting, European financial conditions. Coronavirus Response Investment net): EUR37 billion investment • All national authorities will allow rates on TLTRO III were reduced by • Announced a EUR750 billion bond Initiative for healthcare and SMEs. funds, EUR28 billion structural automatic stabilizers to function. another 50 bps. All other rates buying initiative (PEPP) to support • The Emergency Support Instrument funds, EUR25 billion EIB working were held. money market mutual funds with no will be reactivated to provide EUR2.7 capital lending, EUR20 billion EIB • The PELTROs announced at the purchase limits (capped at 33% of billion to directly support healthcare investments. This will be called the April 30 MPC meeting will be each country's debt for other bond- systems. An additional EUR300 Coronavirus Response Investment carried out as fixed rate tender buying programs). At the April 30 million will go directly to purchasing Initiative. procedures, with an interest rate MPC meeting, the Governing medical equipment. • EUR1 billion to the EIF to support that is 25 basis points below the Council announced that it was • On July 20, EU leaders announced approximately EUR8 billion in average rate on the main prepared to increase the size of the an agreement on a EUR750 billion financing to SMEs. refinancing operations prevailing PEPP by as much as necessary for as recovery package. EUR390 billion will • Active discussions on the use of over the life of each PELTRO. long as needed. be in the form of grants to help European institutions to issue a • At the June 4 and July 16 MPC • Inclusion of all commercial paper recovering economies. The proposal common Eurobond and provide meetings, no changes to interest in the Corporate Sector Purchase will need to pass the European credit lines via ESM. rates were announced. Program. Parliament next. • At the Eurogroup meeting on • On April 7, announced a package April 9 a EUR540 billion package of measures to facilitate the was agreed upon that includes: a availability of eligible collateral for EUR100 billion employment Eurosystem counterparties to insurance fund; an EIB instrument participate in liquidity providing intended to supply EUR200 billion operations. in liquidity to companies; EUR240 • At the April 30 MPC meeting, billion in credit lines from the ESM. pandemic emergency longer-term • EUR360 billion of the pan- refinancing operations (PELTROs) European recovery package agreed were introduced. PELTROs will upon in July will be for recovery consist of seven refinancing loans, underwritten by countries operations meant to support with better credit to reduce the liquidity and the functioning of increased debt burden on the money markets. receiving nations. • At the June 4 MPC meeting, an additional EUR600 billion was announced for PEPP, bringing the total size of the program to EUR1.35 trillion. Monthly net purchases for the program will continue at EUR20 billion, but the timeline for
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Monetary Fiscal Last Updated: Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other July 21 purchases will be extended until at least June 2021. • On June 25, a new Eurosystem repo facility for central banks (EUREP) was established as a liquidity backstop for central banks outside of the euro area. • At the July 16 MPC meeting, it was announced that all asset purchase operations will continue at their current rates “for as long as necessary”. • ECB officials are drawing up a scheme to deal with potentially hundreds of billions in unpaid loans as the continent recovers. Germany • Authorized KfW to lend EUR882 • Initial EUR123 billion relief package • The March 27 package includes • Government has committed to an billion to firms, including those that includes EUR50 billion for small EUR600 billion for loans and loan unlimited backstop. which had not been eligible for companies (up to 10 employees and guarantees; EUR500 billion for KfW • EUR500 billion in tax deferrals. loans before. EUR100 billion in the self-employed) and EUR7 billion to boost liquidity. The package will • May issue a moratorium on social bonds will be sold to fund the in additional health system funding. be supported by EUR156 billion in security payments for struggling initiative. • On March 27, a EUR1.1 trillion relief new borrowing. companies. • An extensive Quick Loan package (30% of GDP) was approved, • VAT rates have been reduced as Programme for SMEs will be run by requiring the removal of the legally- part of the June 4 stimulus KfW, and will offer 10-year loans at binding debt ceiling. The package package. 3%, and will be approved by KfW includes EUR156 billion for social without further risk assessment. spending. • On June 4, Germany announced another EUR130 billion stimulus package, EUR120 billion of which is expected to be in direct government spending. Families with children will receive an extra EUR300 per child; EUR50 billion of the package will be dedicated to sustainability and digitization innovation in the German economy.
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Monetary Fiscal Last Updated: Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other July 21 France • On March 17, announced EUR45 • Announced EUR300 billion fiscal •The March 17 package will allow billion aid package that includes: support package for bank loans. companies to delay paying taxes EUR8.5 billion for two months of Companies that continue paying (EUR35 billion), and will provide payments to workers temporarily laid shareholder dividends will not be support to delay loan payments. off; EUR2 billion for SME support, able to benefit from this. • Six month moratorium on EUR2 billion for the healthcare sector. • EUR20 billion in credits to corporate loan repayment. • The aid package also includes strategic economic actors to • Deferral of utility fees for funding to increase health insurance reinforce their capital or debt companies with less than EUR1 for COVID-19 patients and their securities. million in revenue. caregivers. • In mid-May, EUR16.7 billion in • Extension of unemployment • On April 9, finance minister the form of government-backed benefits until the end of the announced that the total size of the loans for the tourism sector was lockdown. direct fiscal aid package was likely to announced. increase to over EUR100 billion. • In late May, a stimulus package • In May, stimulus packages for the for the automotive industry was tourism and automotive industries unveiled, that included a EUR5 were announced. The tourism billion state loan for the carmaker industry received EUR1.3 billion in Renault. direct public investment, and the automotive industry received EUR3 billion in the form of new electric car purchase subsidies for households and businesses. Finland • Bank of Finland to support • On March 20, announced a EUR5 • On March 20, a package worth • Pension contributions will be liquidity through investing in short- billion package that includes EUR27 EUR10 billion for loan guarantees lowered through end-2020 term Finnish corporate commercial million in healthcare spending, for businesses was announced. (EUR900 million). EUR1 billion has paper (EUR1 billion). EUR650 million in grants to SMEs and been allocated for the State • Structural buffer requirement of the self-employed, and EUR3 billion in Pension Fund to buy commercial all credit institutions reduced by expanded social assistance and paper. 1ppt. unemployment insurance. • Export Credit Agency is expanding • On June 2, a EUR5.5. billion package its lending and guarantee capacity was announced. It includes EUR310 to SMEs by EUR10 billion. million for education, an additional EUR80 million in income support, EUR755 million for transport development, EUR300 million for climate action, and EUR1.4 billion for municipalities.
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Monetary Fiscal Last Updated: Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other July 21 • The supplemental budgets will be paid for by borrowing an additional EUR18.8 billion. Italy • The Treasury will offer state On March 19, announced a EUR25 As part of March 19 relief package: • Liquidity for businesses and guarantees for up to EUR15 billion billion relief package: • EUR100 billion in loan guarantees households (EUR5.1 billion): six- of new bonds issued by local banks. • Strengthening the national health for SMEs. month moratorium on loan • The May 13 stimulus package care system and civil protection • EUR10 billion in loan guarantees repayments for SMEs and mid- included the creation of an equity department (EUR3.2 billion): for large corporations. caps; companies may transfer NPLs fund on the order of EUR2.9 billion, streamlining the import of medical • On April 7, a new EUR400 billion into tax credits. managed by Cassa Depositi e Prestiti devices; requisition of private stimulus package was announced • As part of March 19 relief to aid essential businesses. healthcare facilities if necessary; to aid businesses. The funds will package: suspension of tax hiring of medical personnel to guarantee 90-100% of loans for payments and providing tax reinforce military health units. small businesses, and 70-80% for incentives to businesses and • Preserving employment levels and larger firms, up to EUR800,000. households (EUR1.6 billion); many incomes (EUR10.3 billion): tax payments suspended through strengthening of the unemployment June; large tax credits for sanitation social safety net; a EUR600 allowance expenses and donations. for the month of March for self- • Government has pledged to employed workers; extra resources cover 1/3 of bank losses when crisis for police and security personnel. is over. • EUR4.5 billion in additional support • Families may apply for a to local governments. suspension of mortgage payments. • On May 13, a EUR55 billion package • The May 13 stimulus package was approved, with EUR25.6 billion canceled regional business taxes to for the unemployed, and expands the tune of EUR4 billion. Tax breaks eligibility for recipients of those would also be given to households benefits; EUR12 billion promise to pay carrying out renovations to reduce the outstanding bills of public sector energy consumption and comply suppliers; EUR6 billion in grants to with anti-seismic rules. SMEs; EUR600 million to lower energy bills; EUR3.2 billion for the healthcare sector. • Another stimulus of EUR15-20 billion was being prepared as of end- June. The stimulus will likely be targeted at struggling industries and SMEs.
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Monetary Fiscal Last Updated: Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other July 21 The Netherlands • On March 17, announced a EUR12.7 • Total liquidity guarantee • EUR26 billion in taxes delayed for billion package that included: EUR10 measures for businesses on the 3 months. This increased to EUR64 billion in wage support for employees order of EUR4.5 billion that billion when taxes were deferred whose jobs had been directly includes: EUR2 billion in loans to by another 3 months. impacted by COVID-19; a maximum of self-employed workers with EUR1500 per household for self- subsidized interest rates, EUR2.6 employed workers; a lump sum of billion in credit for SMEs available EUR4000 for businesses that have through various state guarantees. been forced to close. • EUR15 billion in credit made available due to an increased guarantee ceiling for business loans, and EUR12 billion for credit guarantees. Spain • EUR13.9 billion package approved • EUR100 billion in credit • Up to EUR30 billion delayed tax to support healthcare, households, guarantee programs for companies collection for the self-employed SMEs, and sectors most affected by and the self-employed. and SMEs. COVID-19. • EUR10 billion increase in the net • Moratorium on mortgage • EUR1 billion/month in financial borrowing limit of the Official payments and evictions. support for those under an ERTE Credit Institute to increase existing • Employers can apply to defer (temporary mass layoff). lines of credit to SMEs. payment of social security taxes. • The budget of the Ministry of Social • Employers have been allowed to Rights was increased by EUR300 implement "ERTEs" or mass million to finance a social fund to temporary layoffs. combat the consequences of the pandemic. • Spain’s government has been authorized by royal decree to mobilize up to 20% of GDP (EUR200 billion) to support the economy. • On June 15, a EUR3.75 billion stimulus package for the auto industry was announced. Sweden • At the March 16 MPC meeting, the • On March 16, a USD31 billion relief • USD50 billion in CB guaranteed • USD30 billion in tax deferrals for CB announced an extension of bond package was announced. loans to firms. one year, retroactive from the purchases by up to EUR28.7 billion • Government to assume sick leave beginning of 2020. from Mar – Dec 2020. pay for all companies for April and • Preparing for fiscal recovery by • At the April 22 MPC meeting, the May, and a temporary increase in increasing investment in CB decided to purchase EUR1.4 unemployment benefits. agriculture, sports and culture, and billion municipal and regional bonds green jobs.
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Monetary Fiscal Last Updated: Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other July 21 as an expansion of its March 16 bond purchasing program. • On April 3, the CB announced that it would purchase commercial paper to keep interest rates low and improve the credit supply. • Following five previous auctions, the CB announced on May 5 that it would hold regular auctions (every second Thursday until the last day of July) for USD loans totaling up to USD60 billion. • On July 1, the CB announced that it would increase bond purchases by almost EUR20 billion, for a total of EUR48 billion, up to the end of June 2021. The CB also announced that it would begin buying corporate bonds in September 2020. United Kingdom • At the March 10 MPC meeting, • Launched QE of GBP200 billion, • Initial GBP5 billion fund to treat • Announced an additional GBP330 • Three-month mortgage payment the MPC voted to cut the bank rate mostly in government bonds, COVID-19 patients and support social billion in government-backed loans holiday for those affected by by 50 bps to 0.25%. financed by the issuance of CB services. for businesses impacted. COVID-19. • At March 26 , May 7, and June 18 reserves. • Statutory Sick Pay (SSP) will be • Launched a new lending facility • Several tax cuts and incentives MPC meetings, the MPC voted to • Term Funding Scheme for SMEs available for diagnosed individuals, with the Bank of England to part of the July 8 recovery package: hold the policy rate at 0.1%. was launched on March 11. It is a and GBP500 million for economically provide low-cost, easily accessible a reduction in the sales tax from • Next MPC meeting August 6. low-cost medium-term lending vulnerable households. commercial paper to support 20% to 5% for six months; meals program aimed at SMEs valued at • Has so far announced a cumulative lending. eaten out at restaurants will be GBP1 billion. GBP65.5 billion in fiscal stimulus, eligible for discounts; removal of • COVID Corporate Financing Facility which includes a tax cut for retailers, the home purchase tax for eligible announced on March 17 aims to grants to small businesses, pay for properties. provide funding to large those who get sick and miss work, a corporations by purchasing subsidy to cover the cost of sick pay, commercial paper. and expanded benefits for the • Contingent Term Repo Facility unemployed. announced on March 24 aims to • Up to GBP2500/month for those allow market participants borrow CB who lose their jobs or who are risk of reserves against collateral for a losing their jobs and whose annual period of three months. taxable income is below GBP50k. This • On June 18, BoE added another initiative is expected to cost GBP3 GBP100 billion to its QE program, billion/month.
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Monetary Fiscal Last Updated: Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other July 21 bringing the total of the program to • On July 8, the finance ministry GBP754 billion. announced a GBP30 billion recovery • On June 19, BoE announced a package; GBP9 billion in subsidies for reduction in the frequency of USD businesses to rehire laid-off workers; repo operations from daily to GBP3.6 billion to create and support 3x/week. new jobs and training programs;GBP3 billion for green investment; GBP5.8 for construction and infrastructure.
Canada • On March 16, the overnight • On March 13, BoC announced that • On March 11, the first relief • The Business Credit Availability • April 12 relief package interest rate was cut by 50 bps to the domestic stability buffer would package of USD761 million was Program was created to provide implemented tax deferrals for 0.75%. The bank rate and deposit be lowered to 1% for systemically announced. The funds will be used for USD28 billion in liquidity to individuals and businesses. rates were 1.0% and 0.50% important banks, to free up USD207 faster dispensation of unemployment businesses; additional USD18 • Mortgage payments may be respectively. billion in lending capacity. insurance benefits, more funding for billion in other lending facilities. deferred by up to six months. • Overnight interest rate cut by 50 • On March 13, BoC announced a virus research, and financial aid to • USD3.5 billion in lending • Income filing date has been bps to 0.25% at March 27 MPC Bankers’ Acceptance Purchase provinces for medical supplies. available to agricultural and food delayed by 2 months to June 1. meeting. The bank rate and Facility to support funding to SMEs. • On April 12, announced a second processing sectors through Farm deposit rates were 0.50% and • Government will purchase up to relief package of USD52 billion called Credit Canada. • An expansion of 0.25% respectively. USD106 billion of insured mortgage the Canada Emergency Wage Subsidy. the Business Credit Availability • At the April 15 MPC meeting, no pools to provide liquidity to It includes direct cash payments of Program the was also announced changes to interest rates were mortgage lenders. USD1425 every four weeks to those on May 11 to support businesses announced. • On March 30, a new Standing who have lost their jobs due to with loan needs of up to USD44.3 • At the June 3 MPC meeting, no Term Liquidity Facility was launched COVID-19, and will cover up to 75% of million. The BCAP is expected to changes to interest rates were to provide liquidity to major wages for 12 weeks for eligible provide at least USD3.7 billion in announced. financial institutions. companies. direct lending and guarantees. • At the July 15 MPC meeting, the • At April 15 MPC meeting, • One-time tax credits for low-income CB announced that it would announced the creation of households and families with maintain its target rates. Provincial Bond Purchase Program children. on the order of USD35 billion to • Combined relief packages represent supplement the Provincial Money more than 3% of GDP. Market Purchase Program. BoC also • On May 5, a USD179 million relief announced a new Corporate Bond package for the agricultural and food Purchase Program that will purchase processing industries was announced. up to USD7 billion in the secondary market. • On May 11, the creation of the Large Employer Emergency Financing Facility for eligible employers seeking loans of USD44.3 million or more was announced.
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Monetary Fiscal Last Updated: Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other July 21 At the June 3 MPC meeting, BoC announced that due to improvements in short-term funding conditions, the frequency of term repo and acceptance purchases would be reduced. Australia • At the March 19 MPC meeting, • On March 19, the Term Funding • On March 12, announced fiscal • A loan guarantee scheme was • As part of the March 30 relief Reserve Bank of Australia (RBA) cut Facility was established to offer stimulus worth USD10.3 billion, announced as part of the March 30 package: six month loan deferral its benchmark interest rate by 25 three-year funding to authorized including one-time cash payments to relief package that will guarantee for 98% of businesses; early access bps to 0.25%. deposit-taking institutions to lower-income households and 50% of loans for SMEs. It will to pension savings. • At the April 7, May 5, June 2, and provide liquidity to the banking welfare recipients, wage subsidies for support up to USD27.4 billion in • USD24 billion has been set aside July 7 MPC meetings, rates were sector. SMEs, and assistance for tourism lending. for unforeseen measures. held at 0.25%. • RBA has plans to buy government operators. • USD62 million of the June arts • Six-month waiver of payroll tax bonds. Extension of current bond • A second package worth USD46.3 rescue package wil be in for businesses directly affected by buyback program across all billion was announced on March 22. concessional loans. COVID-19. Two year deferral of maturities. As of the June 2 MPC It will provide direct cash payroll taxes for businesses with meeting, they had purchased supplements to jobseekers and USD6.4 million in revenue or less. around USD34.5 billion. welfare recipients. • At the May 5 MPC meeting, the • A third package was announced on bank governor announced that as March 30 that contained USD89 RBA had to date purchased USD32 billion in job support. Measures billion in bonds, it would begin to include USD900 per employee every scale back the size and frequency of two weeks for struggling businesses bond purchases, but is prepared to for six months; cash payments to scale up the purchases again to small businesses. ensure bond market functionality. • The government has separately • Injected additional USD7.65 billion committed to spending an extra of liquidity into banking system. USD3.2 billion to strengthen the • Launched the Standing Term healthcare system. Liquidity Facility of USD57 billion to • In late May, it was determined that provide temporary liquidity support the March USD89 billion job support to financial institutions in need. program had been overbudgeted for and would only end up costing USD48 billion, leaving more room in the budget for relief efforts. • The next stimulus package is expected to target constructions projects.
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Monetary Fiscal Last Updated: Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other July 21 • In late June, a USD174 million rescue package for the arts industry was announced.
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Brazil • Cut the policy rate by 50 bps to • Resumed FX intervention to the spot • Announced a comprehensive fiscal • On April 20, a USD1.3 billion line of 3.75% at March 18 MPC meeting. market for the first time since November package worth USD30 billion, that credit was opened for small, micro, • Cut the policy rate again by 75 2019. includes expansion and front-loading and single entrepreneurs. bps to 3.00% at May 6 MPC • Implemented a set of measures to boost of social assistance/benefit payments. meeting. liquidity. This includes easing loan-loss • Informal workers will receive • At the June 17 MPC meeting, provisions, enhancing liquidity coverage payments of about USD40 for three another rate cut of 75 bps was ratio regulation, easing capital months. made, bringing the policy rate to conservation buffers, lowering reserve • On March 30, a USD7 billion facility 2.25%. requirements on time deposits (once in to finance payrolls of SMEs for two months was announced. Feb and again in Mar), granting loans • Announced several measures, backed by debentures to financial which include bringing forward the institutions, resuming repo operations in 13th pension payment to retirees, foreign currency, and expanding potential expanding the Bolsa Familia program, FX supply through a six-month USD60 providing an emergency cash transfer billion currency swap line with the Fed. to households, lowering taxes and • The BCB announced a series of bond import levies on essential medical auctions and buybacks of up to USD2 supplies, and assisting state and local billion to ensure the orderly functioning governments. of the public debt market. • Passed a constitutional amendment • Loosened capital requirements to creating a separate budget (“war- facilitate increased bank lending by as budget”) to expedite fiscal relief much as BRL1,197 billion (16.4% of GDP) assistance and authorize the central The BCB maintains a summary page of bank to buy and sell government and measures taken to date. corporate debt securities in the secondary market, among other extraordinary measures, as long as the public health emergency is in effect.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other China Mainland Mainland Mainland Mainland Mainland • Cut 7d repo rate, 1y MLF rate, • Three RRR cuts, releasing RMB1.75 • The NPC meeting decided a fiscal • The national financing guarantee • Tax relief (RMB906.6 billion in and 1y LPR each by 30 bps. trillion. deficit of RMB3.76 trillion, or above fund will increase RMB400 billion Jan-Apr) and waived social security • Cut the interest rate on banks’ • Lowered provision coverage ratio for 3.6% of GDP; RMB2.5 trillion tax cut; credit guarantees in 2020 to support contributions. excess reserves from 0.72% to mid-sized and small banks by 20 RMB3.75 trillion local government SME lending; all level government • Deferred loan and interest 0.35% in April. percentage points. special bonds and RMB1 trillion guarantee agencies will reduce the payment for RMB1.2 trillion SME • PBoC was for a time considering • Added RMB1.5 trillion of re-lending and special treasury bond. guarantee and re-guarantee fees by loans by April. Overdue loan a deposit rate cut, but officially re-discount quota for SME loans; RMB300 • RMB150 billion fiscal spending for more than half. repayments can be delayed to as stated it would not make a cut. billion targeted re-lending for virus virus control by April. • Asked banks to extend loans to late as March 31, 2021 and will not control related enterprises; RMB600 • Medical cost compensation for landlords to reduce rents. be subject to penalties. Hong Kong billion loan quota for SMEs through policy confirmed cases. • Cut interest rate by 114 bps to banks. • Subsidized 50% of the interest Hong Kong Hong Kong 0.86% on March 16 in line with the • Plan to achieve RMB800 billion SME payment for targeted loans to bring • Low-interest, government- • Cut payroll, income, property and US. No interest rate activity since. receivables financing in 2020; additional down the financing cost. guaranteed loans to firms. business taxes. RMB1 trillion corporate bond financing in 2020 on top of the level last year; Hong Kong RMB300 billion financial bond issuance • Launched three rounds of measures for SME lending. totaling HK$287.5 billion: the first • Established small business loan round HK$30 billion; HK$120 billion deferment supporting tool (RMB40 billion relief package in the 2020-21 Budget; relending to encourage RMB3.7 trillion the second round HK$137.5 billion. loan deferment) and small business loan expansion program (RMB400 billion relending to spur RMB1 trillion loan) to support lending to SMEs. • RMB70 billion RMB-dominated offshore bills issued. • On June 18, PBoC announced that it would not monetize fiscal deficits or adopt negative interest rates to respond to COVID-19. •In July, PBoC indicated that it was not planning for significantly more stimulus in for the remainder of the year.
Hong Kong • Reduced the countercyclical capital buffer (CCyB) from 2.0% to 1.0%.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other • The current level of regulatory reserves will be reduced by half to release a total of HK$200 billion of lending capacity. • Introduced USD10 billion temporary US Dollar Liquidity Facility. • Pre-approved Principal Payment Holiday Scheme, in which participating institutions will pre-approve deferment of loan principal payments falling due between 1 May 2020 and 31 October 2020 of eligible small-to-mid-sized corporates for up to 6 months. • Special 100% Loan Guarantee under the SME Financing Guarantee Scheme (SFGS).
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other India • At the March 27 MPC meeting, • Announced USD4 billion FX swaps to • Government has committed an • On April 8, plans for an USD13 • Adopted measures to support RBI cut rates 75 bps to 4.4%, and ensure that the foreign exchange market additional USD2 million to healthcare billion package aimed at aiding SMEs infrastructure development for the the reverse repo rate by 90 bps to is adequately supplied with Dollars. infrastructure. was announced. agricultural sector. 4.0%. • Will carry out long-term repo operations • On March 26, the government • As part of the USD265 billion • At the April 17 MPC meeting, the worth up to USD13.5 billion at the announced a USD22.6 billion stimulus spending scheme, USD55 billion will policy rate was held at 4.4%, but benchmark policy repo rate. package that will comprise of food aid be aimed at aiding SMEs. Of that, the reverse repo rate was reduced • RBI announced a USD50 billion three- and direct cash transfers to low- USD40 billion will be used for by another 25 bps to 3.75%. way liquidity injection: auction of income households during the collateral-free loans for 4.5 million • At the May 22 MPC meeting, the targeted long-term repo operations of 3- country's 6-week (has since been businesses. The remaining USD15 policy rate was reduced by 40 bps year tenor for a total f USD13.3 billion at a extended to 6 months) lockdown. billion will be for liquidity support for to 4.0%, and the reverse repo rate floating rate; reduction of reserve ratio by Will also include medical insurance non-bank financial institutions with was also reduced by 40 bps to 100 bps for all banks; accommodation for for front-line health workers. large SME portfolios. 3.35%. Marginal Standing Facility to be increased • On May 17, the government said it • Next MPC meeting on June 3-5, from 2% from SLR to 3% with immediate will spend a total of USD265 billion, at least 25 bps rate cut expected effect till June 30. around 10% of GDP. USD102 billion of (no notes released as of July). • Will take steps to contain bond yields if which had already been spent. The necessary. spending will be financed by bond • Several refinancing facilities for All India issuance, international borrowing, Financial Institutions (AIFIs) have been and central bank spending. The launched that will support credit measures targeted support for the availability in vital industries such as agricultural sector and some housing, agriculture, and development. expansion of existing programs • RBI announced a special liquidity facility providing work. opportunities to low- for mutual funds (SLF-MF) of USD 6.6 wage laborers. billion and a fixed-rate 90-day repo operation for banks exclusively for meeting the liquidity requirements of mutual funds. • RBI extended the benefit under interest subvention and prompt repayment incentive schemes for short-term agricultural loans until August 31, 2020.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other Mexico • Cut the policy rate by 50 bps to • Upgraded NDF auction program from • Announced proposal to set up a • In early April the President has • The bulk of the government’s 6.50% on March 20. USD20 billion to USD30 billion on March health emergency fund that could be promised to disburse two million response to the pandemic has been • At an emergency MPC meeting 9. • Conducted auctions on March 12 and as large as USD7.7 billion. loans to low-income households and in austerity measures that include on April 21, BoM cut its policy rate March 18 under the upgraded NDF • Adjusted 2020 fiscal targets small businesses. major salary cuts for government by another 50 bps, to 6.0%. auction program. • The President made a statement in • At the announcement of the mid- officials, elimination of several • At the May 14 MPC meeting, the • Activated a currency swap with the Fed early April that Mexico’s response to April infrastructure stimulus, the government departments, and a policy rate was cut by another 50 and conducted two auctions. the epidemic would limited in scope, President again promised to issue hiring freeze. bps to 5.50%. • Introduced several measures to provide and would not include much direct, millions of loans to households and • Adopted measures to contain the • At the June 25 MPC meeting, the peso and dollar liquidity to the domestic new spending. Most of the response businesses, although the extent of electricity bill increase for the loan program remains unclear. households during the pandemic. policy rate was cut by another 50 financial system. These include reducing would be focused on continuing • On June 4, the Finance Ministry bps to 5.0%. monetary regulation deposit, adjusting development projects and job performed a liability management the ordinary additional liquidity facility creation. interest rate, strengthening the operation to improve the debt • In mid-April, the President profile. Government Debt Market Makers announced an increase in funding for Program. social programs and infrastructure • Adjusted local-currency bond auction projects of USD25.6 billion. The program based on new market package will be financed through conditions. further austerity measures. • Adjusted accounting rules to facilitate credit refinancing by banks and other financial institutions.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other Russia • Rates held at 6.0% at March 20 • Pausing of easing cycle due to market • Fiscal rule provides for automatic • USD18 billion (1.4% of GDP) has • Financial support for regions to MPC meeting. volatility and pro-inflationary FX-impact. spending from Russia's 9% of GDP been committed to support for fulfill economic development plans • At the April 24 MPC meeting, • Provision of liquidity via regular NWF as well as FX sales to the businesses and USD2 billion of that (effectively renewing federal budget rates were cut by another 50 bps monetary policy operations. market. will be specifically to support bank credits). to 5.50% • FX purchases under fiscal rule halted. • Families will receive an extra USD44 lending to SMEs. • SOE dividend payments will be • At the June 19 MPC meeting, CBR • Standing FX liquidity facilities. per month per child. • Budget deficit of 0.9% of GDP delayed by up to 6 months. cut the policy rate 100 bps to • On March 19, announced FX sales to • Those who lose their jobs or take partially financed through NWF • SMEs will be able to delay loan 4.50%. fully offset lower oil revenues in the event sick leave due to COVID-19 will transfer of USD7.6 billion. repayments for six months. On June 19, CBR announced that of USD25/barrel. receive income of the minimum wage • Infected persons will be able to the interest rate on loans to assist • CBR has allowed banks to value or higher until the end of the year. restructure bank loans. SMEs would be reduced from securities and FX operations at the March • Government will set up a fund for • Additional measures of USD6.5 3.50% to 2.50%. 1 rates. crisis measures, including budget billion only for preferential loans to • Pausing of easing cycle due to market expenditure optimization, support to SMEs. volatility and pro-inflationary FX-impact is individuals under quarantine. • Banks allowed to maintain the expected. • On April 10, a USD13.5 billion credit standing of SMEs, avoiding the • CBR has estimated that their support package of new spending was need for additional loan loss reserves. measures will be on the order of USD15 announced, funded by increased • In the May 11 announcement, an billion (1% of GDP). borrowing. employment support loan program, • CBR introduced a USD6.3 billion facility • On May 11, the President with 85% of loans guaranteed by the aimed at financing SMEs, and reduced announced a series of fiscal state. interest rate on current USD2.2 billion measures: a three month pay facility. increase for social workers, medical workers, and maintenance workers; a three month extension of the current stipend for families with children as well as a proposed increase in the minimum child allowance. • USD163 million for regional development institutions. • New government spending for combating the pandemic is estimated to reach USD42.1 billion. • In early June, plans for a USD73 billion (although could eventually be as high as USD106 billion) recovery plan were announced. The stimulus is expected to be spent on support for families, SMEs, tax holidays, and government-backed loans. It is
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other expected to be finalized at the beginning of July.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other
Saudi • On March 3, the central bank • The Governor of SAMA said the central • The mid-March stimulus package Arabia (SAMA) cut the repo rate by 50 bps bank will intervene to support the also included USD18.6 billion in from 2.25% to 1.75%, and the economy if liquidity is tight or credit is measures such as delays and reverse repo rate also by 50 bps affected, and reaffirmed the central exemptions for tax payments. from 1.75% to 1.25%. bank's commitment to maintaining the These measures will be paid for by • On March 16, SAMA cut rates currency peg. spending cuts in non-priority areas. again: the repo rate by 75bps from • On March 14, (SAMA) announced a 1.75% to 1.00% and the reverse private sector financing support program repo rate by 75bps from 1.25% to with a total value of USD13.3 billion. The 0.50%. program includes deposits of USD6 billion • As of the week of 7/27, no bank in banks to finance companies and allow rate updates have been given by delay in payments by SMEs for a period of SAMA. six months, providing concessional finance. • On June 1, SAMA announced a USD13.3 billion injection for the banking sector to enhance liquidity and support revising private sector loans. On July 5, SAMA published a summation of their stimulus activities ytd. South • MPC cut rates by 100bps on • On March 20, SARB introduced • Low-income families will receive • The government has also • SMEs in distress will be eligible for Africa March 19, double the size of the additional measures to increase market USD30/month. committed USD29 million to an SME a deferral of payments to the expected cut, lowering the policy liquidity, which include: • Department of Trade and Industry relief fund, and USD0.9 million to the Unemployment Insurance Fund rate to 5.25%. • Additional daily liquidity through has created a USD173 million relief New Solidarity Fund, which is open to (UIF) in order to avoid lay-offs, as • The Standing Facilities (SF) Intraday Overnight Supplementary fund for industrial spending. contributions from businesses and well as a deferral on income taxes. borrowing rate - the rate at which Repurchase Operations (IOSROs). The • On April 23, a USD26 billion package individuals. SARB absorbs liquidity - will be amounts will be decided daily depending was announced. USD5.7 billion will • USD11.3 billion of the April 23 relief adjusted to the repo rate less on conditions. be for a job creation and protection package will be for bank loan 200bps, from the current repo rate • The size of Main Refinancing Operations program, and USD2.8 billion will be guarantees to SMEs. 700,000 less 100bps. remains at USD3.2 billion but could be used for welfare grants to the poor businesses are expected to benefit. • On April 15, the MPC cut rates by increased in line with the IOSROs. and unemployed. another 100 bps, bringing the • On March 25 SARB announced it will • The April 23 package will be funded policy rate to 4.25%. begin buying government bonds on the by redirection of USD7.3 billion in • The SF lending rate - the rate at secondary market in order to enhance its existing budgetary spending and which SARB provides liquidity - will OMOs. additional domestic and international be adjusted lower to the repo rate, borrowing. from the prevailing rate of the • On June 24, a revised budget was repo rate plus 100bps. announced, which allocated an • At the May 21 MPC meeting, additional USD2 billion to frontline
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other SARB cut its repo rate by 50 bps to pandemic response services and the 3.75%. SARB forecasts another healthcare sector. An additional two repo rate cuts of 25 bps in the USD1.5 billion will be allocated for next two quarters. the Department of Social • At the July 23 MPC meeting, the Development, and an additional repo rate was cut by 25 bps to USD1.1 billion will be allocated for job 3.5%. Another 25 bps cut is creation and protection. The budget expected in the fourth quarter of increase will be paid for by tax 2020. increases in the coming years.
Turkey • At the March 17 MPC meeting, • CBRT has promised to provide unlimited The government unveiled an As part of the March 18 stimulus As part of the March 18 stimulus CBRT lowered its key policy liquidity to the market. economic stimulus package package: package: interest rate by 100 bps to 9.75%; • Conventional (multi-price) swap (Economic Stability Shield Package) • Deferrals of loan repayments by • The accommodation tax on hotel lowered interest rate paid to banks auctions with maturities of one, three, worth a total USD15.5 billion (2% of firms and tradespeople with cash flow services will be cancelled until over required TRY reserves by 2 and six months, which are currently GDP) on March 18. difficulties through Halkbank’s November. bps to 6%; Turkish banks that fulfill available against the Dollar, will also be • Inventory financing to exporters. Craftspeople Relief Package. As of • The VAT rate on domestic air the TRY loan growth criteria (at held against the Euro and gold. • Temporary and partial state end-May, UD2.2 billion in credit had transportation services will be least 5%, and not more than 15% • FX reserve requirement ratios were provision of income support to been received by over 600k reduced to 1% from 18% for three y/y in real terms) will get reduced by 500 bps in all liability types workers in closed workplaces. craftspeople. months. additional 2pps of the and all maturity brackets for banks that • Additional budget allocation to the • Doubling of the loan guarantee limit • Delays in payment of taxes and remuneration rate. meet real credit growth conditions, Labour Ministry for cash aid to of Credit Guarantee Fund (from social security contributions by a • At the April 22 MPC meeting, the releasing around USD5.1 billion into the families in need. USD3.3.5 billion to USD7.7 billion). wide range of trade and services policy rate was reduced by another market. • As of the end of May, the ESS had sectors for the Apr-Jun period for six 100 bps to 8.75%. • CBRT will provide cheaper funding (as grown to USD38 billion. months. • At the May 21 MPC meeting, the low as 8.25%) to those banks that provide • Improvements in low retirement policy rate was cut by 50 bps to uninterrupted credit flow to the pensions. 8.25%. corporate sector. • At the June 25 and July 23 MPC • CBRT extended the repayment maturity meetings, the policy was kept of its rediscount credit line for exporters unchanged at 8.25%. by 3 months; this can postpone the repayment of credits amounting to up to USD7.6 billion. • CBRT will now accept asset-backed securities and mortgage-backed securities as collateral under the Turkish lira and FX operations it conducts. • On March 31, CBRT announced that it would do its outright purchase operations (of government domestic debt and lease
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other certificates) under the OMO portfolio in a front-loaded manner. The size of the OMO portfolio is currently limited to 5% of the analytical balance sheet, but the announcement states that that number can be revised. • On April 17, CBRT increased the maximum limit ratio for of the OMO portfolio nominal size to the CBRT analytical balance sheet total assets from 5% to 10%; revisions to the Primary Dealer Facility.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other Argentina • On March 20, BCRA lowered the • Intensified dollar purchases in the • Announced an extraordinary lump • Set up subsidized credit lines for • Intensified price controls on policy rate 200 bps from 40% to FX market to preserve exchange rate sum payment for households of up to SMEs through state-owned banks and certain basic goods. 38%. It also reduced the overnight stability. ARS10000. low-cost financing to guarantee • On March 31, the government reverse repo rate by 400 bps to • Implemented a set of measures to • Increased the capital spending agricultural and other essential banned layoffs for two months. 11.4%. increase the flexibility of the financial budget for infrastructure. production. • Introduced a temporary payroll tax system to provide support during the • In April the government promised to break for businesses in particularly crisis. These include limiting bank pay half of worker wages for companies affected sectors. holdings of central bank securities, of less than 800 workers. Specific price lowering reserve requirements on bank points of this measure have not been lending to SMEs and households, established. temporary easing of loan classification • Unemployment insurance benefits, rules and provisioning. the universal child allowance, food • Established a credit facility for SMEs benefits, have all been increased. with no access to credit, which will be • Proposals for financing the relief able to apply for loans at a 24% packages include a wealth tax, debt subsidized rate. restructuring, or an SDR allocation. • Introduced regulations to restrict access to dollar-denominated instruments.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other Chile • MPC cut the policy rate by 75 bps • Extended liquidity management • Announced a nearly USD11.7 billion • Injected an additional USD3 billion • Currently analyzing tax measures to 1.0% in an off-schedule meeting programs in pesos (REPO) and dollars (4.7% of GDP) package of emergency into the FOGAPE (the small enterprise that would enable businesses to on March 16. (FX Swap) through January 2021 and measures, including extending guarantee fund), from which 99.8% of defer certain tax payments and • On March 31, the policy rate was sold dollars in the forward market. unemployment insurance, increased all businesses will be able to obtain generate short-term liquidity. cut by an additional 50 bps to • The FX Swap intervention program funding for the health ministry, and credit to cover their working capital • Several elements of the fiscal 0.5%. amounts to USD20 billion (USD10 increasing funding to municipalities. requirements through April 2021, program have been formally • At the May 6, June 16, and July billion in both the spot market and FX • The government will invoke a through a new “COVID-19” line of approved in Congress: 15 MPC meetings, the MPC voted swaps). special clause in the country’s credit. • Announced a payment targeted to unanimously to keep the rate at • Announced bond-buying program constitution to free up funds (up to • As a complementary measure, low-income households and a 0.5%. to manage high volatility in fixed 2% of expenses approved in the injecting USD150 million into the income market on March 19. Budget Law) without congressional Crédito Corfo Mipyme, an additional capitalization of to facilitate lending •Extended liquidity measures approval. source of funding for small businesses to individuals and SMEs. including the purchase of bank bonds • Financing will come from a range of without access to bank credit, and • Announced Employment from SOMA system participants; sources, including: suspending loosening the criteria for eligibility for Protection Law that provides for up establishment of the Conditional contributions to the pension fund for assistance; up to 200,000 small to six months of unemployment Financing Facility for Increased Loans two years ($500 million/year); business owners are expected to benefits for furloughed workers, or (FCIC) expanding eligible collateral; authorization to seek additional benefit. supplemental income for workers activation of the Liquidity Credit Line financing of up to $4 billion; drawing • USD800 million of the July 5 whose hours have been cut. (LCL); and relaxation of liquidity on up to $500 million in funds that stimulus package will be in soft loans • Announced an additional $2 billion requirements for maturity had been earmarked to certain to middle-class households. fund on April 8 providing assistance mismatches. At the June 16 MPC institutions in the budget law; and for the 2.6 million workers in the meeting, the MPC agreed to open extending the time horizon for informal sector not directly served phase 2 of FCIC, on the order of making a new contribution to the by the existing emergency USD16 billion over 8 months. Strategic Contingency Fund. measures. • Adjusted the mechanism to sell • Announced an additional set of dollars, holding auctions through a measures on April 8, in conjunction • Ministry of Finance now publishes platform that is widely used in the with the Central Bank, to complement a table listing measures undertaken exchange market; amounts to be and expand on the emergency to date as well as their fiscal impact auctioned by the Treasury will be economic package, totaling $5 billion. (Spanish) published each month, as well as $2 billion will come from reallocation • The July 5 stimulus included a results of auctions each week; total of budgeted funds and fiscal austerity provision to delay mortgage sales are envisioned as high as measures. payments for up to six months, and USD9.4 billion. • Providing an Emergency Family expansion of the student loan • Requested a two-year arrangement Income payment from the end of May program. under the Flexible Credit Line (FCL) to the most vulnerable 60% of Chilean
with the IMF in about $23.8 billion. families. • At the June 16 MPC meeting, a • On June 14, the finance ministry special asset purchase program to announced another USD12 billion boost incentives for lending to SMEs. package that will deliver relief over a two-year period. It includes increased
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other The program will be worth USD8 funding for local government, and billion over 6 months. payments of USD126/person for vulnerable families. It will be funded by budget reallocation, sovereign funds and debt issuance. • On July 5, the President announced another USD1.5 billion stimulus, USD700 million of which will be in rent subsidies.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other Colombia • At the March 27 MPC meeting, • Announced a reduction in local • Announced additional transfers • Provision of financial support to • Established VAT exemptions for the CB decided to cut the policy currency bond auctions planned for through different social programs SMEs and households through credit imports of medical supplies needed rate for the first time, from 4.25% this year among other measures to (Familias en Accion, Colombia Mayor, lines and guarantees. to control the pandemic. by 50 bps to 3.75%. support the functioning of the credit Jovenes en Accion) to the most • On April 6, state-backed • Anticipated the VAT refund • At the April 30 MPC meeting, market. vulnerable. development backed Findeter opened scheme for the low-income segment policy rate was cut by 50 bps from • Announced measures to boost • Created the program “Ingreso a USD190 million credit line for to start in April 2020 instead of 3.75% to 3.25%. liquidity in pesos and dollars, Solidario” aimed for families in January 2021. private and public enterprises. • On May 29, the central bank cut including extending access of the conditions of poverty who are not • Streamlined procedures for local • Introduced new credit guarantees the policy rate further to 2.75%. central bank liquidity overnight and already part of these programs. and regional authorities to access for SMEs and independent workers • At the June 30 MPC meeting, the term facilities to managed funds, • On March 25, created an resources linked to mining royalties policy rate was reduced by another stock brokerage companies, trusts, emergency fund (FOME) worth USD3 aimed at facilitating wage payments and regional funds aiming to 25 bps to 2.50%. investment companies, and other billion that will channel resources to and financing working capital. Also facilitate actions and investments financial institutions. Extended the cope with COVID-19. The government suspended company pension needed to attend the emergency. terms and allotment of repo will temporarily draw on resources contributions for two months. This • Poor households may defer their operations. from decentralized entities, including includes USD267 million through the electricity, water, and gas bills by 36 • Authorized the use of rated private savings from the royalties’ scheme National Guarantees Fund. months. debt instruments for transitory (FAE), as well as funds from the • The government is considering the expansion facilities. national pension fund for regional possibility of pension fund • Established a new mechanism of entities (FONPET), totaling about withdrawals during the pandemic. exchange rate hedging through a 1.3% of GDP. USD1 billion NDF auction. • Workers who have seen their • Auctioned USD400 million in dollar incomes decline during the pandemic swaps. will be able to make partial • On March 27, the CB announced withdrawals out of severance funds. additional NDF auctions for USD1 • New measures announced on April billion and FX swaps for USD400 16: high- earning government million. workers will contribute 15-20% of • On March 24, the CB announced its their salary for the emergency; decision to purchase approximately introduced a forceful investment in USD2.4 billion in private securities public sector securities (so called issued by credit institutions with a Solidarity Bonds) by financial remaining maturity of up to three institutions equivalent to about $3bn. years. • On May 11, the government • The CB also announced purchases introduced a subsidy equivalent to of local-currency bonds (TES) for up 40% of a minimum salary per worker to USD0.5 billion in the remainder of for companies that have seen a 20% March. or more reduction in income during • Colombian authorities requested the pandemic. Announced the the renewal of the country’s Flexible deferral of the next income tax payment quota.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other Credit Line (FCL) with the IMF worth about USD10.8 billion. • On April 14, the central bank reduced reserve requirements and announced additional purchases of public sector bonds. • On May 11, the MPC authorized the CB to carry out repo operations up to USD1.6 billion. • On June 1, the sovereign issued $2.5 billion (Global Bond 2031 and Global Bond 2051) in the international capital market amid high investor participation.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other Czech Republic • Lowered policy rate by 25 bps to • Banks have been allowed to • Government has committed EUR3.7 • Government has pledged EUR33.3 • Postponed tax payments for 3 1.75% at the emergency MPC postpone loan installments, for billion in direct aid to businesses: billion (16% of GDP) in loan months. meeting on March 16. clients impacted by the pandemic. workers in quarantine will have 60% guarantees, so that businesses can • Cut policy rate by another 75 bps • Banks have been called on to of their wages covered by the state; seek additional financial resources to to 1.0% on March 26. postpone dividend payments to shore employees who have lost their jobs get them out of the current crisis. • At the May 7 MPC meeting, the up their own financing stability. due to the shutdown will have 100% two-week repo rate was lowered • Repo operations have been of their wages covered by the state, 75 bps to 0.25%, and the Lombard increased from once to three and businesses will have 80% of labor rate to 1.0%. The discount rate times/week. costs covered. remained unchanged at 0.05%. • EUR122 million approved for the • At the June 24 MPC meeting, agriculture, food, and forestry rates were left unchanged. industries. • EUR274 million for the purchase of PPE. • A one-time stipend of EUR925 for the self-employed. • These measures will be financed by a EUR3.6 billion budget deficit. Egypt • The MPC cut the overnight • Central Bank increased its holdings • Unveiled USD6.4 billion support • The Micro, Small, and Medium • Government cut electricity and deposit rate, overnight lending of US treasuries by 4% y/y and 0.5% package. That includes support for Enterprises Development Agency natural gas prices for heavy industry rate, and the rate of the main m/m. the healthcare, tourism, and irregular (MSMEDA) on April 7 to provide SMEs users, lowered taxes on company operation by 300bps to 9.25%, labor sectors. with one-year loans of up to dividends, and postponed the tax on 10.25%, and 9.75%, respectively. • President has ordered an increase USD61,000. property for factories and tourism • The discount rate was also cut by in wages and bonuses for public companies by three months. 300 bps to 9.75%. employees in the 2020/21 budget. • Government will allow a six month • At emergency April 2 , May 14, • At the end of May, the government delay of payment on USD114 billion and June 25 MPC meetings, rates introduced another stimulus package in private sector loans. were kept unchanged. aimed at aiding the tourism industry, • Central Bank plans to cancel • Next MPC meeting August 13. on the order of USD3 billion. around USD1.6 billion in NPLs through the end of March. • Income tax exemption cap raised by almost 50%.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other Hungary • Current policy rate is holding at • On March 25, the NBH announced • A EUR26 billion stimulus package • On June 10, a EUR398 million loan • Moratorium on principal and 0.90%. that it will provide unlimited long- was announced on April 6. Details of scheme for SMEs was announced. interest payments until the end of • At the April 28 MPC meeting, no term liquidity to banks at fixed the stimulus remain unclear. The loans will be zero-interest, the year. changes to interest rates were interest rates through a collateralized available through the Hungarian • Taxes for some 80,000 SMEs will announced. lending facility with maturities of Development Bank. be delayed until June 30. • At the May 26 MPC meeting, no three-, six- and twelve months and • Evictions and property seizures changes to interest rates were three- and five years. will be delayed until the end of the announced. • The NBH will provide a grace period state of emergency. • At the June 23 MPC meeting, the on repayments of loans granted to • In total, an estimated USD1.3 policy rate was lowered by 15 bps companies under the Funding for billion in tax and fee cancellations to 0.75%. Growth Scheme (FGS+). and deferrals. • NBH called on banks to implement a moratorium on retail borrowers as well. • FX stock swap increased. • On April 7, NBH announced its government securities purchase program, which will be a competitive auction for the purchase of government securities, launching May 4 for “the period and to the extent necessary”.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other Indonesia • By March 19 MPC meeting, a 25 • BI cut RRR from 8% to 4% to boost • First package (February) included • The June 4 budget announcement • Hygienic currency will be provided bps cuts to the key interest rate banks’ liquidity by USD3.2 billion; on fiscal incentives, grants to local included USD8.8billion in SME for circulation, while also providing had lowered the rate to 4.50%. April 14, BI announced another RRR governments, and boost to social incentives. Packages interest incentives for cashless transactions. • After the April 13-14 MPC cut of 200 bps, effective May 1, security funds. subsidies, credit guarantees, and loan • Second package included easing of meeting, BI announced it would hoping to add another USD7.5 billion. • Second support package took total restructuring funds for micro, small, import restrictions and cuts in hold rates steady: reverse repo • BI has bought USD9 billion worth of amount to USD2.2 billion. and medium enterprises (MSMEs). import taxes on select commodities. rate at 4.50%, deposit facility at government bonds so far this year, • A third stimulus package has • In the second relief package, loan 3.75% and lending facility at 5.25%. USD7.6 billion of which followed its reallocated USD1.8 billion to fund the payments for SMEs were delayed for • At the May 18-19 MPC meeting, assessment that COVID-19 may pose healthcare system. up to one year. bank governors voted to hold all risks to Indonesia’s economy. • As of early April, the government • In the June 17 budget rates steady again. • BI now holds daily FX swap has set aside a total of USD26.36 announcement, up to USD8.6 billion • On June 18, BI cut the 7-day auctions, up from 3 times/week. billion for the stimulus, equivalent to was allocated for tax incentives. Tax reverse repo rate by 25 bps to • Strengthening the intensity of the 2.5% of the country’s gross domestic reliefs, including for the tourism 4.25%. triple intervention policy to maintain product. sector and individuals (with an rupiah exchange rate stability in line • On June 4, the government unveiled income ceiling). with the currency's fundamental a budget which would allocate an • Permanent reductions of the value and market mechanisms, extra USD21.2 billion on top of the corporate income tax rate from 25 including the spot and DNDF markets USD26.4 billion already promised for percent to 22% in 2020-21 and 20 as well as purchasing SBN in the the total pandemic stimulus. USD6.2 percent starting in 2022. secondary market. billion will go to supporting the • On April 7, BI finalized a deal on a healthcare sector, USD14.4 billion to USD4.3 billion 50-year bond, meant strengthen the social safety net, to cover the costs of COVID-19 relief USD6.9 billion to support ministries efforts. and regional administrations. • BI agreed a repurchase agreement • On June 17, the government again line with the US Federal reserve increased its planned spending to worth USD 60 billion. USD 49.63 billion. • At the April 13-14 MPC meeting, bank governors decided to continue to increase QE efforts, through several avenues, including by providing banks and corporates a term-repo mechanism with SUN/SBSN underlying transactions of tenors up to one year, and lowering RRR and relaxing demand deposit obligations. • At the May 19 MPC meeting, the following provisions were announced: liquidity for the banking industry in
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other terms of restructuring MSME loans and ultra-micro enterprises with formal loans; strengthening monetary operations and Islamic financial market deepening through Sharia- Compliant Liquidity Facilities; accelerating implementation of the digital economy and finance as part of the national economic recovery efforts • At the June 4 budget announcement, the BI governor pledged to continue buying government bonds to finance the large new budget. Already bought USD 1.8 billion government bonds.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other Kazakhstan • On March 10, the CB raised its • Mandatory sale of FX revenue by • Announced a USD740 million (0.4% • Moved to provide local businesses policy rate 275 bps from 9.25% to SOEs, and tightening of FX sales to of GDP) stimulus package to boost with an additional USD920 million 12.0%. local companies. employment through infrastructure (0.5% of GDP) in soft loans, with local • On April 3, following the maintenance projects and ensure that producers receiving priority to reduce government’s passage of anti- companies can offer paid leave to dependence on imports and ensure stimulus measures, the central employees forced to stay home with food security. bank then cut its policy rate back children as schools have been closed. to 9.5% to support economic • Size of stimulus package was activity. subsequently increased to USD10 • At the April 27, and June 7 MPC billion, of which $4.1 billion will come meetings, the policy rate was held from the National Oil Fund. at 9.5%. • Will distribute a subsidy of USD95/month to individuals whose income has been affected by the pandemic. Malaysia • CB cut the overnight policy rate • CB has lowered RRR by 100 bps • A second support package of • A first relief package of USD4.6 • First package included lower by 25 bops to 2.5% at the March 3 from 3.0% to 2.0% and has allowed USD58.3 billion was released on billion was announced on February minimum pension contributions, MPC meeting. banks and financial institutions to March 27 and includes compensation 27, and included aid for businesses and tax payment extensions. • CB cut the overnight policy rate draw down their liquidity buffers. for workers on unpaid leave and (especially tourism). • Second package created electricity by 50 bps to 2.0% at the May 5 • CB expects to release USD6.9 billion acceleration of cash handouts to low- • USD11.5 billion loan scheme for discounts for SMEs. MPC meeting. of liquidity to banking system. income households. large companies, guaranteeing up to • Deferment of all loan payments • At the July 7 MPC meeting, CB • BNM orders automatic six-month • A third support package of USD2.3 80% of the sum borrowed as part of for six months, starting April 1. cut the overnight policy rate by 25 moratorium on household and SME billion was announced on April 6, the March 27 package. • The remaining part of the June 5 loans, urges corporate loans to be primarily for wage subsidies for stimulus package will be in tax bps to 1.75% restructured. employers and SME grants. incentives for the manufacturing, • A series of financing facilities is • A fourth fiscal support package was automotive, and tourism sectors. expected to provide USD757 million announced on June 5, on the order of in support to SMEs. USD8.2 billion. Of that, USD2.3 billion • BNM allows banks to fully utilise is direct stimulus for the extension of government bonds in complying with wage subsidies, job programs, and reserve requirement SRR ratio. incentives for businesses to hire. • On June 5, CB announced measures to help business financing by both the private sector and public banks worth about USD 1.4 billion.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other Morocco • Central Bank cut the base • The Ministry of Economy • On March 15, the King ordered the • SMEs are eligible for access to • All businesses will be able to defer interest rate by 25 bps to 2.0% on established the Economic Monitoring creation of a special public-private additional credit lines and deferral of tax payments from mid-March March 17. Committee (CVE) in early March to wealth fund worth at least USD1 tax obligations. through the end of June. • At the June 16 MPC meeting, the create an economic action plan to billion to mitigate the social and • 95% of new bank loans to SMEs will CB cut the benchmark rate by 50 respond to the COVID-19 pandemic. economic effects of the COVID-19 be guaranteed by the Central bps to 1.5%. • The CB is offering banks financial pandemic. Guarantee Fund. instruments in MAD and in foreign • USD200 million will be spent on currency, accepting a wide range of expanding healthcare infrastructure. securities from commercial banks in • Employees registered under the exchange for refinancing, and National Social Security Fund will extending the duration of loans. receive a USD200/month stipend. • The CB is also strengthening an Other households will receive existing program to help both job stipends ranging from USD80 – 120 seekers and SMEs. based on household size. • At the June 16 MPC meeting, the CB • Every head of household operating cut the reserve rate to 0% to release in the informal sector whose USD1 billion in liquidity. employment was affected by COVID- 19 will receive an up to USD116 stipend. This will be funded by the relief fund. Employees in the formal sector who are unable to work are eligible for unemployment assistance.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other
Nigeria • Reduction of interest rates on all • USD9.3 billion liquidity injection to • The government has announced a applicable CBN intervention support the healthcare, cash transfer of USD10.7 million to facilities from 9% to 5% per annum manufacturing, and real sectors. the poorest Nigerians—but it is with effect from March 1, 2020. • One-year moratorium announced unclear who exactly is receiving the • At May 28 MPC meeting, the on all principal repayments on all CBN stimulus. MPC voted to reduce the policy intervention facilities. • A USD2.8 billion fund was rate by 100 bps to 12.5%. • Deposit banks granted leave to announced in mid-March, that will • At the July 20 MPC meeting, the consider temporary and time-limited commit USD2.6 billion to support policy rate remained unchanged. restructuring of tenor and loan terms local manufacturing and boost import for businesses in oil and gas, substitution, and the remaining agriculture and manufacturing as well USD200 million will be used to as households affected by outbreak support the healthcare sector. of COVID-19. • Participating financial institutions to provide new amortization schedule for all beneficiaries of CBN intervention facilities. • Expected to take measures to move away from a multiple FX regime. • A targeted credit facility for SMEs worth USD136.6 million was announced in early April. It will be administered through NIRSAL Microfinance Bank, which is reportedly facing difficulties disbursing the loans. • At the July 20 MPC meeting, the MPC voted to keep all policy parameters in place, at current rates.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other Philippines • On February 6, the CB cut the •BSP has lowered RRR for banks by • Announced USD525 million stimulus • Around 0.6% of 2019 GDP of credit • The Bureau of Internal Revenue policy rate by 25 bps to 3.75%. 200 bps. package which will be used to guarantee for small businesses and has extended the income tax • On March 19, the CB cut the • The BSP purchased USD 5.9 billion purchase COVID-19 testing kits and support to the agriculture sector. payment deadlines from April 15 to policy rate by 50 bps to 3.25% worth government securities (about medical supplies, social protection for Financial assistance will also be June 14. • On April 16, the CB cut the policy 1.5% of 2019 GDP). vulnerable workers, and support provided to MSMEs and vulnerable rate by 50 bps to 2.75%. • BSP Announces Extraordinary vulnerable market sectors. households through specialized • At the June 25 MPC meeting, the Measures to Support Domestic • The Philippine government microfinancing loans and loan MPC cut the policy rate by another Liquidity, including Purchases of launched a USD3.9 billion emergency restructuring. 50 bps to 2.25%. Government Securities in the subsidy program for low-income • The June stimulus package would Secondary Market, reduction in the households announced on March 27. include USD 12.6 billion for wage RRP Volume Offering, Repurchase • On June 4, the House of subsidies and business loans. Agreement with the National Representatives approved a USD26 Government. billion recovery package, USD13.4 • BSP allowed loans to MSMEs to be billion of which would be used for counted as part of banks’ compliance health, education, and food security with reserve requirements, and projects. As of the week of 6/8 the assigned zero risk weight to loan package was still in the process of exposures guaranteed by the clearing legislative hurdles. Philippine Guarantee Corporation. • On July 21, the CB announced a 100 bps reduction in the RRR of thrift banks and cooperative banks to support financing capacity to SMEs. Peru • Central Bank cut its policy rate • Extended repo operations and • Announced USD1 billion in cash • On March 14, extended credit • Temporarily reduced tariffs on 100 bps from 2.25% to 1.25%. introduced new tools to support transfers to support low income guarantees and increased resources medicine and medical instruments • On April 9, the CB further liquidity conditions in the financial households, and well as incentives for of a specialized fund (CRECER) aimed and supplies. lowered its policy rate by 100 bps market. the private sector through tax at supporting SMEs on the order of • Authorized the withdrawal of to 0.25%. • Intensified foreign exchange deferrals. USD 28 million. pension funds to mitigate the • At the May 7, June 11, and July 9 intervention through FX swaps (close • On March 16, introduced budget • On March 25, established a fund for economic impacts of COVID-19. MPC meetings, the policy rate was to USD2 billion outstanding on end- modifications in order to increase SMEs (FAE-MYPE) to extend credit • Established a contribution by maintained at 0.25%. March). allocations to the health sector on the and provide credit guarantees to executive branch public servants to • Introduced flexibility on additional order of USD51 million. support working capital and debt support health workers. reserve requirements applied to FX • On March 30, the government refinancing, on the order of USD85 • Low-income households were forward and swap operations, as well announced a USD26 billion relief million. allowed to postpone their electric, as bank FX lending. package for disease containment, and • On April 1, MEF announced a gas, and telecomm bills for March. • Requested a two-year arrangement direct aid to its mining sector. program to guarantee USD8.7 billion under the Flexible Credit Line (FCL) in loans to 350,000 businesses, most with the IMF for USD11 billion. of them SMEs. This funding is part of • Introduced new repo operations to the March 30 stimulus package. encourage and facilitate the
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other coordination of client debt • On May 12, the government rescheduling with credit institutions. extended the credit guarantee The central bank will allow rated program (Reactiva Peru) from about securities, including credit portfolios USD8.8 billion to a total of USD17.6 or foreign currency, as collateral for billion. repos. • As of July 8, total BCRP liquidity injection operations totaled USD13.7 billion. Poland • Key interest rate cut of 50 bps on • Launched large-scale purchases of • On March 18, a fiscal package on • The job protection “pillar” of the • The self-employed and small March 17, bringing the rate to Treasury bonds on the secondary the order of EUR46.4 billion (9% of March 18 stimulus package is worth businesses in distress will be exempt 1.0%. market. GDP) was announced, with five EUR16.6 billion in SME loan from social security payments for • At the April 8 MPC meeting, • Introduced promissory note loan for pillars: protection of jobs, healthcare guarantees. three months. another 50 bps cut was banks, which will allow the funding, financial system stability, • The business support “pillar” of the announced, bringing the key refinancing of loans granted by banks business support, and public March 18 stimulus will be a EUR22 interest rate to 0.50%. to non-financial sector enterprises investment. billion fund financed by the Polish • Repo operations aimed at (functions like TLTRO). • Employee wages will be subsidized Development Fund. providing banks with liquidity; • At the March 17 MPC meeting, CB up to 40%, and the wages of the self- • On June 5, a stimulus package minimum interest for 4-day repos reduced RRR from 3.5% to 0.5%, and employed will be subsidized up to passed through the lower house of reported to be 1.50%. announced plans to conduct repo 80%. the legislature. The package includes • At the May 28 MPC meeting, the transactions and purchase leu- • Additional EUR1.6 billion in EUR126 million to subsidize loans of policy rate was cut by 40 bps to denominated government securities healthcare spending. struggling businesses, 0.10%. on the secondary market. • At the June 16 MPC meeting, the • At the May 29 MPC meeting, the policy rate was maintained at bank reiterated its commitment to 0.10%. conducting repo transactions and purchasing government securities. Qatar • The CB reduced the QCB deposit • The government is also directing • In mid-March, the government • President has asked that farmers rate by 50 bps to 1.00% government funds to increase their announced a USD23.3 billion stimulus be given the same considerations as • Reduced the QCB lending rate by investments in the Qatar Stock package, of which USD20.6 billion will businesses and entrepreneurs. 100bps to 2.50% and reduce the Exchange by USD2.75 billion (as part be allocated to supporting the private • Customs duties on food and QCB repurchase rate (repo) by of the mid-March stimulus) , while sector. medical supplies lifted for six 50bps to 1.00%. the central bank will provide months. • Another 50 bps policy rate cut additional liquidity to banks operating • Utility and rent exemptions for expected by end-Q2. in the country. SMEs for six months. • Other measures include rent • The CB has put in place exemption for the logistics areas and mechanisms to encourage banks to small and medium industries for six postpone loan installments for all months. borrowers for six months.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other Romania • On March 20, the CB cut its key • CB has committed to provide • Romania’s March relief package is • As part of the March stimulus, • Income tax payment will be policy rate by 50 bps from 2.5% to liquidity to credit institutions through worth almost 2% of GDP, and includes package, the credit guarantee ceiling delayed by two months for sectors 2%, and narrowed the symmetrical repo operations and by purchasing measures for 75% coverage of the for SMEs was raised to EUR1 billion, affected by the COVID-19 outbreak. corridor of the interest rates on its RON-denominated government wages of workers forced into and could be raised as high as EUR3 • Discounts on corporate income tax facilities around the policy rate to bonds on the secondary market. unemployment by the pandemic. billion. payments. +/-0.5pps from +/-1pp. • CB may cut the RRR. • Romania will run a fiscal deficit of • The state-owned company Unifarm • On May 29, the MPC decided to • The CB announced new bilateral 6.7% of GDP to pay for the stimulus. received a loan of EUR237 million for cut the policy rate by 25 bps to repo operations worth EUR1.4 billion • In early May, Romania launched a the purchase of medical and 1.75%, and the Lombard rate by 25 from May 15 to June 15. EUR1 billion stimulus package for protective equipment. bps to 2.25%. SMEs, comprised of grants, vouchers, • Formal MPC calendar has been and coverage for 50% of suspended and MPC meetings will unemployment costs. be held whenever it is deemed necessary. South Korea • Central bank cut its key policy • BoK has signed a USD60 billion • On March 3, Parliament approved a • On March 23, released USD80 • Financial and tax support for rate by 50 bps from 1.25% to bilateral currency swap agreement USD9.8 billion supplementary budget billion (double the size of a previous families and businesses affected, 0.75% at March 16 meeting. with the US to support the local to channel money into the commitment) relief package for including 50 percent income tax cuts • At the April 9 MPC meeting, BoK foreign exchange market. healthcare, childcare, and outdoor businesses expand policy financing given to landlords for rent. chose to leave its key rate • BoK has expanded the list of eligible market sectors. loans for SMEs, help them keep jobs, • Measures to tax support for unchanged. OMO participants and OMO • On April 30, Parliament approved and inject liquidity into financial boosting private sector spending. • At the May 28 MPC meeting, the collateral, eased collateral another USD 9.8 billion markets by buying corporate bonds. policy rate was lowered by 25 bps requirements for net settlements in supplementary budget, which will be • The April 8 package includes to 0.5%. the BOK payments system. used to make direct cash payments to USD29.7 billion to expand the loan • At the July 16 MPC meeting, • BOK will buy USD1.2 billion in 3-, 5-, the all but the top 30% of households guarantee program. interest rates were left unchanged. and 10-year bonds. in Korea. • On April 22, the government • On April 16, BOK launched USD 8.2 On April 8, a package totaling USD44 committed another USD70 billion to billion loan support program billion was announced, that included the most affected industries, SMEs, aimed at banks, insurers. USD14.6 billion in stimulus measures and workers. • On May 6, BOK temporarily for local economies. • In May, an auto-industry loan of suspends auctions for USD funding • On June 3, Korea unveiled on a USD405 million was announced. provided by the Fed-BOK currency USD28.8 billion supplementary • The other USD20.8 billion of the swap on stabilizing FX market. budget, USD8 billion of which will be June 3 stimulus will be used for used to enhance social safety nets. emergency funds for SMEs.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other Thailand • Bank of Thailand has lowered the • Cheap funds for banks so they can • Thailand’s Cabinet approved a • In the March 10 stimulus package, • First package included benchmark rate by 25 bps to extend USD 15.3 million of loans at a stimulus package worth an estimated Bank of Thailand gave cheap funds to concessionary loans and tax cuts. 0.75%, the lowest since the MPC 2% interest rate to small and USD3.2 on March 10. banks so they can extend USD4.5 • The federal budget was also was instituted in 2008. medium-sized firms. • Thailand’s Cabinet approved billion in loans at a 2% interest rate to recently passed and is expected to • At the March 25 MPC meeting, • A six-month debt moratorium on additional stimulus measures worth SMEs, plus another USD1 billion in spur USD19.7 million in investment. the MPC voted to maintain the principal and interest for such USD3.56 billion on March 24. This security fund loans at a 3% interest • On May 13, the revenue policy rate at 0.75%. businesses, for loans not exceeding rate. department has extended the filing package included USD1.3 billion in • At the May 20 meeting, Bank of USD 3.06 million. • The March 24 package included deadlines for eight types of cash payments to workers. Thailand cut the policy rate by 25 • Setting up a USD12.24 million USD1.8 billion in loans to banks and corporate tax returns by one to two bps to 0.50%. corporate bond liquidity stabilization • On April 28, the Cabinet approved a individuals. months. • At the June 24 MPC meeting, the fund to backstop the bond sector. new cash handout program worth • In the May 31 package, USD15.3 policy rate was maintained at • Cutting the contributions that USD4.6 billion, under which 10 million billion will be used to provide loans 0.50%. commercial banks make to a financial farming households will receive and loan holidays to SMEs, and bailout fund to 0.23% of deposits USD462 per household. another USD12.2 billion will be used from 0.46%. • On May 8, the Cabinet approved to provide bridge financing to high- another cash handout program worth quality firms with bonds maturing USD6.7 billion for more than 13 during 2020-2021. million informal workers to each receive USD160. • Thailand's parliament approved a package of economic measures worthUSD58 billion on May 31. Of this amount, USD30.6 billion will be for public health spending and economic relief efforts.
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Monetary Fiscal Rate Actions Other Measures Direct Support Credit/Loan Guarantees Other UAE • The repo rate was cut by 50 bps • CDs are the monetary policy • On March 16, a 15-point economic • As part of the 15-point stimulus • Banks may reschedule loans from 2.0% to 1.5% on March 3 and instrument through which changes in stimulus was launched that included plan announced in mid-March, the contracts, grant deferrals on has been held there since. interest rates are transmitted to the USD1.3 billion to subsidize water and Abu Dhabi Investment Office will monthly loan payments (through • The CB also reduced rates UAE banking system. electricity costs for citizens and manage as a USD816 million credit the end of 2020), and reduce fees applicable to the Interim Margin • The central bank is also reducing businesses. guarantee scheme for SMEs; a market and commissions Lending Facility (IMFL) and the the amount of capital banks are • On March 22, the UAE Cabinet maker fund was established on the • As part of the 15-point stimulus Collateralized Murabaha Facility required to hold for their loans to approved a USD4.3 billion stimulus order of USD272 million to enhance plan announced in mid-March, (CMF) by 50bps, to 50bps above SMEs to 25%. package to support SMEs and reduce liquidity. commercial and industrial fees for the repo rate against CDs. • The central bank will also revise the barriers to employment. • On March 14, the central bank 2020 were suspended, startups are existing limit which sets maximum announced USD27.2 billion Targeted exempted from performance exposure that banks can have to the Economic Support Scheme (TESS) and guarantees, real estate registrations real estate sector. other measures to reduce the are suspended, commercial vehicles economic effects of the COVID-19 are exempt from annual registration pandemic. On March 22, the stimulus fees, the tourism & entertainment was boosted to USD34 billion, and on sectors are exempt from fees. April 5, added another USD16.6 billion. It is currently estimated to be almost USD70 billion. • The scheme provides funding for banks to grant relief from principal and interest payments for up to six months on loans to all private sector and retail borrowers affected by the coronavirus. • TESS includes USD13.6 billion of funding from which banks can draw collateralized funds at a 0% interest rate. Ukraine • At the March 12 MPC meeting, • Continuous FX interventions in the • Government doubled the maximum • Income tax filing deadline delayed the policy rate was cut 100 bps market. loan size for its 5-7-9 Available Loans to July 1. from 11.0% to 10.0%. program from EUR51,000 to • A one-time pension increase to • At the April 23 MPC meeting, the EUR102,000, expanded the eligibility low-income pensioners. policy rate was cut 200 bps to for the program, along with several • A moratorium on utility late 8.0%. other anti-crisis measures to support payment penalties. • At the June 11 MPC meeting, the SMEs. policy rate was lowered 200 bps to 6.0%.