Country policy responses to Covid-19 As of 12 August 2020*
Economic stimulus (expressed as % of 2018 GDP)
70 68.9
60
50 48.9 47.8 44.6 40 33.8 30 29.6 27.2 26.8
20 20.3 Monetary (liquidity) stimulus 16.0 13.3 12.0 11.9 10.3 9.7 10 8.9 8.5 7.2 6.8 Fiscal stimulus 5.8 4.8 4.6 4.5 4.5 4.3 4.3 4.0 3.3 3.2 3.1 3.1 3.4 2.9 3.0 2.2 1.7 1.4 1.8 1.7 0.4 0.3 0.3 0.1
0 0.2 0.1
G20
Italy
Mali
India
Brazil
China
Benin
Japan
Kenya
Sudan
Ghana
France
Turkey
Angola
Nigeria
Mexico
Zambia
Canada
Uganda
Senegal
Somalia
Djibouti
Rwanda
Ethiopia
Namibia
Australia
Germany
Indonesia
Argentina
Botswana
Seychelles
Zimbabwe
Korea, Rep. Korea,
Cabo Verde Cabo
Madagascar
South Africa South
Sierra Leone Sierra
Saudi Arabia Saudi
South Sudan South
United States United
Guinea-Bissau
United Kingdom United
Sub-Saharan Africa Sub-Saharan Russian Federation Russian G-20 members Sub-Saharan Africa
Sub-Saharan Africa (proposed) Africa Sub-Saharan Notes: Economic stimulus packages announced in 2020 in response to Covid-19. Fiscal stimulus includes aid, grants and guarantees. Monetary stimulus includes only central banks’ explicit monetary liquidity injection (e.g., through lending facilities, open market operations, purchase of government securities) and expected impact from lowering policy interest rates and other initiatives; does not reflect measures by regional central banks. See table below for details. Proposal for Sub-Saharan Africa is based on ODI recommendation. G20 members excluding EU. Weighted average for G20 and Sub-Saharan aggregates. *Updated as of 29 August to reflect additional information on stimulus in Kenya. Sources: News reports, government and central bank press releases, IMF policy tracker, ODI country briefers,. GDP data are based from World Development Indicators database and UN (for South Sudan only); exchange rates on the date/next business day of policy measure announcements are based from respective countries’ central banks. See hyperlinked dates for specific sources. Economic stimulus per capita ($)
Japan 27,056 Canada 22,090 United Kingdom 19,152 United States 18,597 Italy 16,845 Germany 16,069 France 8,400 Australia 7,648 Korea, Rep. 5,024 Brazil 2,428 Saudi Arabia 2,084 China 1,162 Turkey 910 Russian Federation 831 South Africa 767 Mexico 460 G20 Argentina 344 Indonesia 333 India 207
Seychelles 745 Namibia 178 Cabo Verde 169 Botswana 146 Senegal 104 Nigeria 92 Ghana 88 Zimbabwe 68 Zambia 66 Kenya 56 Angola 48 Benin 28
Saharan Africa Saharan Ethiopia - 24 Sierra Leone 23 Sub Sudan 22 Rwanda 13 Madagascar 9 Djibouti 6 Mali 4 Uganda 2 Guinea-Bissau 1.1 Somalia 1.0 South Sudan 0.7 - 5,000.0 10,000.0 15,000.0 20,000.0 25,000.0 30,000.0
Economic stimulus per capita ($)
Sources: Economic stimulus estimates are based on ODI policy country response tracker as of 12 August 2020. Population data are from World Development Indicators database. *Updated version as of 29 August 2020 to reflect additional information on stimulus in Kenya. Country economic stimulus and income level
75.0
JPN 65.0
55.0
ITA CAN 45.0 GBR
35.0 DEU USA BRA 25.0
Economic stimulus as % of GDPof % as stimulus Economic FRA
15.0 KOR AUS ZAF CHN IND IDN TUR SAU RUS 5.0 Sub-SaharanMEX Africa ARG
- 10,000.00 20,000.00 30,000.00 40,000.00 50,000.00 60,000.00 70,000.00 -5.0 GDP per capita ($, 2018)
Sources: Economic stimulus estimates are based on ODI policy country response tracker as of 12 August 2020. GDP and population data are from World Development Indicators database. *Updated version as of 29 August 2020 to reflect additional information on stimulus in Kenya.
Country Fiscal stimulus Monetary stimulus 2020 economic Total fiscal Macroeconomic Assistance to Social / health Policy rates/liquidity Central bank growth stimulus stimulus businesses assistance to forecast/revision businesses
G-20 members Argentina $9.2 billion • Expansion of Work • Prohibition of Total: $6 billion (630 billion and Assistance dismissing pesos*) Program for the workers from April • The BCRA imposed a As of government to pay until August (as of 24% maximum annual 21/04/2020 part of the salaries of 28/07/2020) interest rate for private sector • Additional special credit line that *Reports companies that are payment of may be offered by indicate P850 starting to recover; $146 to 9 million financial entities for billion in total. provide people starting MSMEs. The BCRA Earlier package complementary on June 8 (as of will reduce the as of salary for critical 01/06/2020) reserve requirements 19/03/2020 sectors (e.g., • Suspension of (as of 19/03/2020) included tourism, evictions for those and provide incentives stimulus via the entertainment) until who can’t pay (26/03/2020) for central bank December; 12- their rent and financial entities that credit line. month grace period rent freeze will offer this special Thus, we for loans at 0% based on March credit line. The credit subtracted the interest rate for rent rates until line for MSMEs P220 billion- independent workers endorsed by the September 30 central bank (as of 24/07/2020) BCRA amounts at (BCRA) (as of least to $3.4 billion 29/03/2020) endorsed credit • P470 billion pesos (P220 billion) (as of line in ($6.9 billion) to 21/04/2020) fiscal package provide credit for companies and self- • New credit line employed (as of subsidized credit line 21/04/2020) offered at 24% annually with a 3- month grace period for MSMEs with no credit line as of 11/05/2020 amounting to P22 million ($316,000)
• New credit lines at a subsidized interest rate of 24%, including a special tranche for investment in domestic capital goods, and another tranche with minimum requirements for MSMEs with no bank financing as of 25/06/2020, amounting to P200 billion ($2.7 billion) injection in the lending market
• As of 24/06/2020, financial institutions has approved loans for P325,823 million ($4.4 billion) under this special line
• No-fee ATM transactions from June to September (as of 02/07/2020)
• Suspension to file foreign exchange and financial summary proceedings from April to August (as of 21/07/2020) and other measures for access to foreign exchange
Earlier P100 billion for Suspension of social P350 billion in To add additional 60 $4.9 billion (P320 billion) announcement: public works security payments for direct payments to days of arrear for all credit line to be opened $10.6 billion projects, including companies in the most help unemployed bank debtor by the central bank (700 billion money to build affected sectors, workers, classification from 19 where companies can pesos) homes and fix including airlines, pensioners, family March to September borrow for 180 days to schools. It hotels, movie theatres allowance 2020. keep their businesses As of includes a re- and restaurants and beneficiaries and afloat 19/03/2020 launch of a manufacturers that are those on welfare (As of 19/03/2020) program that unable to import raw offers people low- materials. Cap on prices for interest loans to key personal build and repair P25 billion credit offer hygiene and houses. by Banco Nación medical supplies (state-owned bank) for throughout March producers of food, (possibly for personal hygiene, longer). cleaning products and medical supplies to keep up output.
P8 billion credit offer by Banco Nación for companies to buy equipment to accommodate work from home set up.
Australia $141 billion A$3.9 billion • A$85.7 billion for the • A$16.7 billion As of 08/09/2020 Provide a A$90 billion National (A$199 billion*) infrastructure JobKeeper Payment income support • RBA reduced the ($50.1 billion) funding government: stimulus scheme (extended at for individuals cash rate twice in facility for the banking -3.4% in 2020; *Total a tapered level for (including March 2020 to system to increase 2.5% in 2021 as economic an additional 6 Coronavirus 0.25% lending to business of 23/07/2020 response months, from Supplement • The RBA announced and support SMEs (as package September 2020 extended to 31 a target for the yield of 19/03/2020) RBA: announced until March 2021) December 2020, on 3-year Australian Contract by amounts to more than 4% in A$289 billion, • A31.9 billion to boost at a lower Government bonds 2020; 6% in including cash flow for payment rate) of around 0.255, to 2021 as of Reserve Bank employers • A$9.4 billion for help lower funding 06/08/2020 of Australia’s • Government the health costs across the (RBA) A$90 extension of the response to economy. RBA billion term Covid-19 SME protect stands ready to funding facility Guarantee Scheme Australians, purchase Australian as of to loans written until including Government bonds 23/07/2020 30 June 2021, and vulnerable groups across the yield making targeted such as the curve to help Earlier amendments to elderly and those achieve this target government ensure that the loans with chronic • In March 2020, the report: available suit the conditions Bank announced it $141.3 billion evolving needs of • A$902 million for would conduct (A$320 billion) SMEs. social services regular 1-month, 3- As of • Funding additional and child care month and 6-month 31/03/2020 training to ensure • Payments to maturity repurchase Australians have assist lower- operations as long access to the critical income as market conditions skills needed as the Australians, warranted. In April economy recovers. including 2020, the Bank Supporting pensioners, announced that daily Apprentices and income support open market Trainees wage recipients and operations were subsidy for a further eligible likely to be on a 6 months to 31 concession card smaller scale in the March 2021 and holders near term expands it to • To assist with the medium-sized smooth functioning businesses from 1 of Australia's capital July 2020. markets, RBA • Support to regions, decided in May 2020 communities and to broaden the range industries most of eligible collateral affected by the for the RBA's economic impacts of domestic market the pandemic, operations to include including the Australian dollar aviation, agriculture, securities issued by fisheries, tourism, non-bank and arts sectors corporations with an investment grade credit rating.
Brazil $72.3 billion BRL392.4 billion central government expenses (extraordinary credit) Total: $436.2 billion BCB: -6.4% (BRL 392.4 for social security benefits, personnel, social charges and salary The Banco Central Do Brasil (BCB) has in 2020 (as of billion) as of allowance and unemployment insurance, among others, to combat implemented liquidity support measures that can 25/06/2020) 23/07/2020 the effects of the Covid-19 crisis. potentially expand liquidity in the system by $220 billion (BRL1,217 bn) and capital relief measures Earlier that can potentially increase credit supply by announcement: Total of BRL 300 billion government spending related to addressing $216 billion (BRL 1,197 billion) (information $54.2 billion the pandemic as of 14/04/2020, as reported by Economy Ministry. accessed on 09/08/2020). Specific measures are (300 billion as follows: Reais) as of A BRL 40 billion o Reduction of Capital o Reducing minimum 14/04/2020 emergency line — of Conservation Buffer, capital requirement for which 85% is funded creating room for credit for SME, with by the National credit supply an expected capital Treasury and 15% is expansion of relief impact of about funded by private approximately BRL BRL 3.2 billion for banks — aims at 640 billion. new operations, and a supporting the payroll o Repurchase potential debt costs of SMEs. The operations in foreign restructuring emergency line has the currency that can agreements of up to potential to reach up to potentially increase BRL 228 billion for 12.2 million employees liquidity by BRL 50 SME working at 1.4 million billion o Providing more companies. o BCB loans for flexibility on Agri- Earlier BRL59.4 billion to help BRR83.4 billion for financial institutions business Credit Bill announcement: companies keep jobs the most vulnerable backed by regulation, potentially $29.4 billion filled people in society, debentures, increasing (150 billion o BRL22 billion worth such as: potentially increasing agribusiness credit Reais) as of of savings from 3- o BRL23 billion for loans in the system supply by BRL 6.3 17/03/2020 month corporate tax the second by BRL 91 billion billion deferral for SMEs instalment of 13th o The BCB is preparing salary for retirees the legal and o BRL 3.1 billion operational boost for Bolsa framework to grant Familia assistance loans to financial institutions backed by BRL 4.5 billion to their credit portfolios, directly combat the with an expected coronavirus liquidity increase of BRL 670 billion. o Higher ceiling for banks repurchase of Financial Letters, potentially increase BRL 30 billion in liquidity
o Tax effects arising from the FX hedge operations of banks will not be deducted from banks’ equity, enabling an expansion of approximately BRL 520 billion in credit operations
o The BCB lowered policy (Selic) rate from 4.5% in December gradually from January to August to 2.0%
o Other covid19-related central bank/liquidity measures are found here
Canada $306.5 billion C$176.9 billion direct C$25.6 billion for Total: $512.1 billion BOC: -8% in (C$411.4 support for individuals protection of health 2020; over 5% billion) (e.g., wage subsidy, and safety measures In view of the covid-19, in 2021 (as of employment insurance, the Bank of Canada 15/07/2020) As of emergency response C$9.1 billion direct (BOC, accessed of 24/07/2020 benefit) support for students 09/08/2020) has taken BOC: and recent graduates the following actions: Canada’s C$18 billion direct (e.g., youth GDP to plunge support for businesses employment and skills • Lowered the • Corporate Bond as much and C$4.9 billion direct development overnight rate by a Purchase Program to as 15% to support for sectors program; student cumulative 150 bps hold up to a total of 30% in the loans, benefits and since early March to C$10 billion par value second C$85billion liquidity grants) 0.25% of eligible assets quarter of support to businesses 2020 from its and individuals through C$3 billion direct • As of 27/03/2020, the • BOC purchases of level in late deferral of tax payment support for seniors BOC announced to Bankers’ Acceptances 2019 until August, and sales begin acquiring (BAs) in the (04/05/2020) tax remittance and C$2.3 billion support Government of secondary market customs duty for vulnerable groups Canada securities in through the Bankers’ payments the secondary market. Acceptance Purchase Purchases will begin Facility (BAPF). BAs C$86.5 billion credit with a minimum of to be purchased up to and liquidity support to C$5 billion per week, 08/17/2020: C$215 businesses (excludes across the yield curve billion ($151.2 billion) central bank liquidity until recovery is support) underway [From 1 • Commercial paper April to 10 August purchase program: comprise of 20 weeks C$29.1 billion ($20.5 = C$100 billion or billion) as of $70.3 billion] 05/08/2020
• Canada Mortgage • The Office of the Bond Purchase Superintendent of Program: to manage Financial Institutions its balance lowered the Domestic sheet or support Stability Buffer market functioning. requirement for From 17/03/2020 to domestic systemically 06/08/2020, important banks by purchases amount to 1.25% of risk C$6.7 billion ($4.7 weighted assets. The million) release of the buffer will support in excess • Provincial Money of $215.8 billion Market Purchase (C$300 billion) of Program. Allocation additional lending from 03/25/2020 to capacity to the 06/08/2020: C$10.5 economy during the billion ($7.4 billion) period of disruption related to COVID-19 • Provincial Bond (13/03/2020) Purchase Program: total portfolio • Other standing purchases of no lending/liquidity more than C$50 facilities for financial billion ($35.2 billion) institutions
Earlier • C$105 billion to support wage subsidies, announcement: monthly income replacement scheme, $175.8 billion direct support for companies and (C$250 billion) households As of • C$85 billion from tax deferrals and sales tax 01/04/2020 rebates • C$25 billion earmarked for small business credit program • C$40 billion in liquidity is available through government lending agencies
Earlier C$202 billion for direct spending to announcement: individuals, tax deferrals, government-backed $142.7 billion credit and wage subsidies for businesses (C$202 billion) As of 28/04/2020
Earlier C$52 billion in direct support for individuals announcement: and companies $74.8 billion (C$107 billion) C$55 billion in temporary tax deferrals for As of households and businesses 25/03/2020
Earlier C$55 billion in C$10 billion announcement: temporary tax deferrals emergency care $57 billion for households and program for (C$82 billion) businesses workers who stay As of 25/03 home and do not /2020 10% wage subsidy to have access to paid eligible small sick leave businesses for the next 90 days
C$27 direct support for companies and individuals
China $930.4 billion • RMB2 trillion from increased deficit from last year and Total: $687.8 billion (RMB6.6 trillion) government bond issuance for covid-19 control to be transferred (RMB 4.8 trillion) based As of 22/05/2020 to local governments. A special transfer payment mechanism to on policy measures be set up to ensure that funds go straight to prefecture and taken as of 09/08/2020 county governments and directly benefit businesses and people. RMB 1.7 trillion liquidity RMB 300 billion • RMB1.6 trillion • RMB500 billion to • low-income injection through open special central bank yuan increase over continue earners to be market operations lending to support last year of special implementing allowed to (03/02/2020 and financial institutions to local government reductions of VAT postpone the 04/02/2020) lend to key enterprises bonds issuance for rates and the share of payment of their (supporting pandemic investment, with employees’ basic old- social insurance Announced cuts of control) at favourable priority for new age insurance paid by premiums, and all targeted required rates (as of infrastructure and enterprises employment- reserve ratio (RRR) for 11/04/2020) new urbanization • RMB2.5 trillion related small and medium- initiatives, major savings for government sized banks to release RMB500 billion quota transportation and enterprises from the charges will be RMB400 billion of long- for central bank water conservancy following policies cancelled term funds (as of lending and discounts projects and introduced early this • to reform the 07/04/2020) to support the work national railway year and will be system for disease and production development extended until end prevention and Targeted cut in reserve resumption of • To promote year: exempting control, improve requirement ratio for enterprises (04/03 regional large- micro, small, and mechanisms for banks to issue inclusive 2020) scale development medium businesses direct reporting loans, releasing from contributions to and early warning RMB550 billion of long- RMB350 billion special basic old-age of infectious term funds (launched in credit quotas of policy- insurance, diseases, and March) oriented banks (as of unemployment ensure prompt, 09/03/2020) insurance, and work open, and Lowered the interest injury compensation transparent Interest rate of reverse rates of central bank insurance schemes; release of repos in open market lending for agriculture reducing or cancelling epidemic operations lowered by and MSEs by 0.25 VAT for small-scale information. 20 bps, bringing a total percentage points, taxpayers; exempting • to increase inputs decrease to 30 bps from 2.75% to 2.5%. VAT on services such into the R&D of since the beginning of as public vaccines, this year (as of RMB1 trillion increase transportation, medicines, and 10/04/2020) in central bank lending restaurants and rapid testing and central bank hotels, tourism and technologies, build discount quotas for entertainment, and more medical small and medium- culture and sports; facilities for sized banks (as of and reducing or epidemic control 10/04/2020) cancelling civil and treatment, set aviation development up more mobile Notice for banking fund contributions and laboratories, financial institutions port development ensure emergency shall grant time-limited fees. The payment of supplies, and deferment of loan corporate income strengthen public principal and interest taxes by micro and health and repayments to micro small businesses and epidemic and small businesses self-employed prevention at the upon their applications, individuals will be primary level. extending the postponed to next • to launch repayment date to as year. extensive late as March 31, • Policies to reduce initiatives to 2021, and waiving any enterprises’ improve public penalty interest (as of production and sanitation. 04/06/2020), and operating costs (e.g., • to raise subsequent extension lowered prices for government of policy (as of electricity, broadband subsidies for basic 01/06/2020) and internet services medical insurance and rent) for rural and non- working urban • allowing micro, small, residents by an and medium average of RMB30 businesses to per person, and postpone principal pilot inter- and interest provincial on-the- repayments on loans spot settlement of will be further outpatient bills extended till the end through basic of March next year. medical insurance • The scope of the accounts. government financing • to provide support guaranty will be to medical expanded and institutions badly guaranty fees will be hit by the epidemic reduced significantly. • Large commercial banks should increase inclusive finance lending to micro and small businesses by more than 40 percent. • Support for enterprises in increasing bond financing. • Finance skills training to stabilize employment. • To help businesses get more orders and keep their employees on, we will increase credit supply, extend the coverage of export credit insurance, lower compliance costs for imports and exports, and support the domestic sale of export products Earlier reported Key measures* include: (i) increased spending on epidemic estimates: prevention and control, (ii) production of medical equipment, $368 billion (iii) accelerated disbursement of unemployment insurance and (RMB 2.6 trillion) extension to migrant workers, (iv) tax relief and waived social *estimate of security contributions. announced fiscal Central government $15.9 billion (RMB measures or subsidy on 50% of the 110.5 billion) to financing plans enterprises’ interest control the As of 30/04/2020 payment on the basis coronavirus of actual lending rates transmission so as to ensure their (as of 04/03/2020) actual financing cost below 1.6% (10/02/2020)
France $562.7 billion As of 13/07/2020, Finance (€510 billion) expected minister: -11% announcement by end- in 2020 August of new stimulus (as of plans up to €100 02/06/2020) billion to support youth employment and tax cuts for companies
As of 15/04/2020, an increase to €110 billion (from €45.2 billion as of 17/03/2020) in order to help big companies as well as raise aid for smaller companies to €1,500 from €1,500 previously.
[Earlier announcement: [Of the €45 billion €45 billion to help as of 17/03/2020] businesses €8.5 billion for (17/03/2020), of which unemployment €35 billion will be for benefits small business and other hard-hit sectors through reduced social security contributions; at least €2 billion for solidarity fund for the self-employed and shopkeepers.] €300 billion bank loans guarantee to companies (17/03/2020)
Germany $1.3 trillion €130 billion (as of 03/06/2020), covering measures such as: Government: (€1.23 trillion) • value-added tax cut from 19% to 16%, providing families with an -6.9% in 2020; As of 06/04/2020 additional €300 per child and doubling a government-supported 4.9% in 2021 rebate on electric car purchases (as of • €50 billion fund for addressing climate change, innovation and 23/06/2020) digitization within the Germany Government: -5% in 2020 €1.1 trillion coronavirus crisis package, of which: (as of 23/03/2020) €156 bn €600 billion for €156 billion in new supplementary "economic stabilisation borrowing to fund budget fund" offering €400 the largesse and billion of guarantees for extra health companies' debts, spending €100 billion to lend directly to or buy stakes in troubled firms, and €100 billion to fund state investment bank KfW. o government will stand fully behind €500,000 of lending to companies with up to 50 employees and €800,000 for larger ones up to 250 workers o Depending on the number of employees, individual companies will receive up to €15,000 each over a period of 3 months
Companies will be able to delay tax payments
€357 billion boost to the amount of company borrowing KfW can guarantee
€50 billion euros of support for small and one-man-band companies, like photographers, musicians or carers.
India Updated total: Updated total central government stimulus Of the Rs21 trillion central government stimulus as Union Finance $149 billion package amounts to Rs21 trillion (or $277 of 18/05/2020, Rs 9.9 trillion ($131 billion) is Ministry: (R11.3 trillion*) billion) as of 18/05/2020 from Rs20 trillion as reported to emanate from RBI’s measures. -4.5% in as of 18/05/2020 of 12/05/2020. The Rs21 trillion supports financial year direct cash transfers and free foodgrains for This is consistent with RBI’s reported impact of 2020/2021 as *Of which, the poor, support packages for small liquidity measures taken since February of up to of 06/07/2020 central business and a host of sectors, loans for Rs 9.6 trillion (as of 06/08/2020). Additional government: struggling business and reforms aimed at liquidity measures are extended to agriculture and R11 trillion; creating a 'self-reliant India'. Of the Rs21 housing sectors, as well as regulatory forbearance states: R3 trillion trillion, Rs 9.9 trillion ($131 billion) is reported for borrowers and MSME debt restructuring (as of to emanate from RBI’s measures. 06/08/2020).
As of 06/08/2020, the policy repo rate is at 4.0% and reverse repo rate is at 3.35%, which has been reduced by 115 and 155 bps, respectively, since March 2020
Total from earlier As of 12/05/2020, Rs13.5 trillion or $178 As of 12/05/2020, total of Rs 6.5 trillion or $85.7 announcements: billion (as part of central government’s billion from RBI’s policy cut and liquidity measures $181.2 billion overall Rs 20 trillion stimulus package), (as part of central government’s overall Rs 20 including the following measures: trillion stimulus package). Announced measures Of which, central include: government: $178 billion* Tax breaks for small Rs 1.7 trillion As of 27/03/2020, Rs As of 01/04/2020, the (13.5 trillion businesses package of free 3.74 lakh crore liquidity RBI has extended the Rupees*) foodgrains to poor injection into system, time period for As of 12/05/2020 Incentives for domestic and cash to poor such as: realization and manufacturing women and elderly o liquidity injection repatriation of export *Total stimulus (announced on worth of Rs 2.8 lakh proceeds for exports package 26/03/20) crore in the financial made up to or on July amounts to Rs20 markets through 31, 2020, from 9 to 15 trillion (or $263.8 various instruments months from the date of billion) in total, of o 75 bps cut in repo export which Rs 6.5 rates to 4.4%; 90 bps trillion is reported cut to 4% in reverse As of 27/04/2020, The to emanate from repo rate RBI opened a special RBI’s policy rate o 100 bps cut to 3% liquidity facility for cuts and liquidity from 4% in cash mutual funds of Rs measures. reserve ratio of all 50,000 crore. On Earlier banks effective from 30/04/2020, the RBI Earlier announcement of the fortnight decided that the announcement central government beginning 28 March regulatory benefits of central as of 26/03/20: 2020 for a period of 1 under this scheme will government: year be extended to all $22.6 billion Cash transfer o Conduct repo banks. (1.7 trillion measures are set to operation of up to Rs Rupees) benefit farmers, 1 lakh crore to inject As of 26/03/20 rural workers, poor liquidity into the pensioners, market construction workers, low- As of 01/04/2020, the income widowers, RBI has increased among others. ways and means advance limit by 30% 5 kg of either rice or from the existing limit wheat per person for all States/Union and 1 kg of pulses territories to enable the per household for State Governments to the next 3 months tide over the situation arising from the Medical insurance outbreak of the cover of 5 million COVID-19 pandemic rupees per person for front-line workers (such as nurses, doctors, paramedics, and sanitation workers in government hospitals) in the coronavirus outbreak (as of 26/03/20)
States State of Bihar $3.07 billion Rs 100 crore relief (Rs 230.7 billion) package for the poor (as of Bihar 27/03/2020) Rs 100 crore State of Delhi Delhi government Delhi announced to Rs 800 crore transfer Rs 5,000 (estimate) each to 8 lakh beneficiaries under Haryana widow, differently- At least Rs 1,200 abled and elderly crore (estimate) pension schemes and to transfer Himachal another Pradesh Rs 5,000 in the first Rs 500 crore week of April (as of 27/03/2020) Kerala Rs 20,000 crore State of Haryana Special financial Punjab assistance for Rs 116 crore people in below (estimate) poverty line (BPL) category and low- Uttar Pradesh income groups Rs 353 crore such as daily wagers, labourers, street vendors and As of 24/03/02 construction workers. This will *crore = 10 cost the state million government nearly Rs 1,200 crore per *lakh = 100,000 month.
All BPL families to be provided their monthly rations for the month of April free of cost while all government school children and those enrolled with anganwadis (rural childcare centre) will be given dry rations for the period the schools and anganwadis stay closed.
Workers registered with the Haryana Board of Construction Workers and all families who have not registered under MMPSY (social security programme) scheme will be provided a sum of Rs 4,500 per month on weekly basis starting 30 March 2020.
Eligible daily wagers, including labourers and street vendors, with a bank account will be directly provided an assistance of Rs 1,000 per week.
Free admission of all coronavirus patients requiring hospitalisation.
Providing accident insurance of Rs 1 million to all health and frontline workers engaged in curbing the coronavirus spread. (as of 24/03/02)
State of Himachal Pradesh State government announced Rs 500 crore relief package for the poor and the needy, including: o Rs 30 crore for construction workers who are likely to face financial troubles due the coronavirus outbreak. About 105,000 workers registered with the Building and Construction Workers Board will be provided Rs 2,000 as one- time relief. o Ration including flour and rice for 2 months to targeted public distribution system card holders. o Rs 160.2 crore as first quarter pension will be released to social security pension holders in the first week of April 2020. Rs 3,000 as first quarter pension will be provided within a fortnight to about 534,000 social security pension holders including about 125,000 widows and disabled persons (as of 24/03/02)
State of Kerala Rs 20,000 crore special package to overcome coronavirus disease, including: o Rs. 2000 crore loans for families who come under the Kudumbasree schemes o Rs 2000 crore to be distributed under the rural employment guarantee scheme during April and May o Rs 1320 crore for 2-month social security pensions to be paid in March. Rs. 1000 to be given to the families with financial difficulties who do not avail of the social security pension o Rs 50 crores in April for opening restaurants which will provide cheap meals at Rs 20. o Rs 500 crore for the health package. o Rs 14,000 crore contract arrears to be paid in April (as of 20/03/2020)
State of Punjab Rs 96 crore earmarked to transfer Rs 3,000 to each registered construction worker in the state
Sanctioned Rs 20 crore out of the Chief Minister Relief Fund for providing free food and medicines to the needy in the state.
Local government department to defer the due date of making payment of water and sewerage bills by 1 month in all Municipal Corporations and Councils, as well as to extend the amnesty scheme on property tax until 31 May 2020 (as of 24/03/02)
State of Uttar Pradesh Financial package of over Rs 353 crore to give cash handouts to an estimated 3.53 million daily wage earners and labourers, including: o Rs 1,000 each will be given to 1.5 million daily wage labourers and 2.03 million construction workers across the state through bank transfer o Free food grains for the months of April and May in advance to more than 8.38 million widow, old age and handicapped pensioners (as of 24/03/02)
Indonesia $47.8 billion Rp97.1 trillion to Rp123.5 trillion in Rp87.6 trillion for Bank Indonesia (BI) Lower the rupiah Government: (Rp677.2 trillion) support ministries incentives for micro, the healthcare has injected a total of reserve requirements up to -0.4% in as of 04/06/2020 and regional small and medium sector $41.2 billion (Rp583.5 by 50bps for banks 2020 (as of administrations businesses. trillion) since the financing export-import 04/06/2020) Rp203.9 trillion to beginning of the year activity effective from Rp44.6 trillion for Rp 120.6 trillion for strengthen social to carry out monetary 1 April 2020 for a Central bank: state-owned bigger tax incentives safety net programs operations to stabilize period of 9 months The economy enterprises and the financial market before a further review. is predicted to labour-intensive and boost bank improve businesses liquidity, among other BI has relaxed starting in Earlier Rp 70.1 trillion ($4.3 Rp110 trillion ($6.7 purposes (as of mandatory reporting, Quarter IV- announcements: billion) for tax billion) for social 04/06/2020). suspended late 2020 and $24.6 billion incentives and credit protection. submission penalties overall (Rp405.1 trillion) for businesses BI will continue buying and postponed export economic as of 31/03/2020 Rp75 trillion ($4.6 government bonds in suspensions growth in 2020 billion) for health the primary market as (31/03/2020) is predicted to care that will be the last resort and reach 2.3% used to purchase non-competitive bidder The Financial Services (as of medical equipment to help finance the Authority (OKJ) has 14/04/2020) such as test kits government’s budget relaxed credit scoring and ventilators, and (as of 04/06/2020). and loan restructuring Finance provide incentives requirements for minister: for medical workers BI has lowered its 7- informal workers and growth to slow day reverse MSME owners at 4.7%, below Rp 25 trillion ($1.5 repurchase rate by a (01/04/2020) the initial billion) to anticipate total of 100 bps to 4% target of 5.3% staple foods needs in 2020 (as of (as of and to conduct 16/07/2020) 25/02/2020) market and logistics operations Lower the FX reserve requirements for Earlier $725 million (as of Of the $725 million commercial banks announcements: 25/02/2020) (as of 25/02/2020) from 8% to 4%, $8.725 billion o extra funding effective 16/03/2020, o to support the for the which will increase FX tourism, airline, and Affordable Food liquidity in the banking the property Program industry by around industries o The package $3.2 billion and o waive taxes for also allocated simultaneously hotels and US$324 million alleviate foreign restaurants in for low-income exchange market selected regions households pressures. o more incentives to As of 14/04/2020, to ease export and support efforts to import rules recover the national o unemployment economy from the benefits effects of Covid-19, BI will increase monetary $8 billion (as of easing through 13/03/2020) expansion of monetary o fiscal incentives operations, reducing primarily for the the Rupiah Statutory manufacturing Reserves (GWM) by industry in the form 200 bps for of tax breaks worth Conventional US$1.4 billion Commercial Banks o for businesses in 19 and 50 bps for Sharia manufacturing Commercial Banks / industries in the next Sharia Business Units, 6 months: and not apply - reduced corporate additional Giro income tax by obligations to fulfil 30% Macroprudential - relaxation of VAT Intermediation Ratio refunds both for Conventional - deferral of import Commercial Banks tax payments and Sharia - income tax Commercial Banks/ exemption for Sharia Business Units workers with for a period of 1 year. annual income BI also announced below $13,0000 measures to further expand the use of Non-fiscal stimulus non-cash payment package (as of transactions in 13/03/2020) mitigating the impact o reduce the of Covid-19. ‘Restriction and Prohibition’ measures of certain products (e.g., fish and forestry products) that are either restricted from being imported or exported or are prohibited from being imported or exported o simplify the import process of raw materials o assisting 735 businesses that have a good history of complying with government regulations o accelerate the implementation of the National Logistic Ecosystem (electroni c system) to integrate the logistics community in the supply sector
Italy $1 trillion $164 billion (€155 billion) package (as of 15/05/2020) aimed to To promote the use of (€930 billion) support restarting businesses, workers, families, healthcare, credit claims as schools, universities, of which: collateral and to • €12 billion in • €25 billion have been • reinforcing incentivize lending to cash has been allocated to support parental leave and small and medium- allocated to employment and babysitter sized enterprises, the Regional guarantee income vouchers Bank of Italy (BOI) has Authorities and and decent living • increasing number extended the additional local bodies for conditions for Italian of days of credit claim the payment of households assistance for frameworks to include Public • €4 billion for the disabled family loans backed by Administration cancellation of members Covid-19-related public debts to suppliers regional taxes on • funds have been sector guarantees (as and service productive activities allocated for of 20/05/2020) providers. • €34 billion have been assistance and allocated for services for the The BOI (as of guarantees and for disabled 27/03/2020) has refinancing the SME • €1.4 billion have recommended that at Fund been allocated to least until 01/10/2020, • €3 billion to universities and all banks and banking support tourism and national research groups under its culture sectors bodies, 4,000 supervision to not pay researchers will be out dividends and not recruited in take on any irrevocable universities and commitments on research bodies dividend payments; • Health System and and refrain from Civil Protection carrying out share buy- Force continues backs aimed at with €5.5 billion remunerating shareholders. $431.6 billion (€400 billion) guarantees (as of To help banks and 06/04/2020), of which: supervised non-bank • €200 billion in loans, intermediaries to up to 90% guaranteed continue to conduct by the State, for all business, the BOI (as businesses of 20/03/2020) has: • €200 billion in export o granted extensions on guarantees reporting obligations o allowed non- significant banks to • strengthening and operated temporarily simplification of the below required Central Guarantee thresholds (e.g., Fund for SMEs capital conversation • up to 100% buffer, liquidity guaranteed loans for coverage ratio) holders of VAT o re-scheduled on-site numbers. inspections
$28.5 billion (€25 billion) direct measures and €350 billion liquidity pump (as of 16/03/2020) of which: • €10.3 billion to preserve employment • €3.2 billion to levels and incomes strengthen the • €5.1 billion to pump national health care up to €350 billion of system and the Civil liquidity to help Protection businesses and households and businesses
Japan $2.2 trillion Additional $1.1 trillion or ¥117.1 trillion stimulus package (as of Total: $1.2 trillion Bank of Japan: (¥234.2 trillion) 27/05/2020), of which: -5.7% to -4.5% o Deferred full o Purchases of for fiscal year • additional • ¥140 trillion yen in • increased implementation of commercial paper 2020; 3.0% to ¥31.9 trillion financial assistance to medical the finalized Basel III and corporate bonds 4.0% for fiscal yen in firms hit by the spending standards by one with the upper limit of year 2021; 1.3% government pandemic • support for year, and about $185.9 billion to 1.6% in fiscal bonds issuance • aid to firms struggling students who lost encouraging banks (¥20 trillion) and the year 2022 (as of • ¥10 trillion yen to pay rent part-time jobs to use their capital Special Funds- 05/11/2020) in reserves that • more subsidies to and liquidity buffers Supplying can be tapped companies hit by (as of 05/08/2020) Operations, which for emergency slumping sales o Actively purchase can amount to $945 spending Japanese
Increase to a total of $1.1 trillion or ¥117.1 trillion (from ¥108.2 government bonds billion (¥100 trillion) trillion on 07/04/2020) stimulus package, including: and T-Bills for (as of 05/08/2020) o universal cash handouts of ¥100,000 per every individual in financial stability Japan, instead of the original plan to give ¥300,000 to each purposes and household whose income had fallen sharply due to the virus stabilising the entire outbreak yield curve at low o ¥1 trillion special subsidies to local governments so they can level (as of provide financial aid to companies 27/04/2020) o ¥13.9 billion to triple the national stockpile of flu drug Avigan to o Actively purchase ensure there is enough to treat 2 million people exchange traded funds and Japanese Earlier announcements: real-estate trust $996 billion (¥108.2 trillion) emergency economic stimulus package funds (J-REITs) for to fight the rapidly spreading coronavirus outbreak and minimize its the time being so impact on the domestic economy (07/04/2020 ), including: that their amounts o ¥6 trillion worth of cash benefits to households, companies and outstanding will self-employed people experiencing severe income falls due to increase at annual the COVID-19 outbreak. ¥300,000 will be paid to eligible paces with the upper households, up to ¥2 million to small and mid-size businesses limit of about $111.5 and up to ¥1 million to freelancers and other self-employed billion (¥12 trillion) people. and about $743.6 o ¥26 trillion worth of tax and social insurance premium payment million (¥180 moratorium for distressed households and companies billion), respectively (as of 27/04/2020). Earlier Earlier o Apply a negative announcements: announcements: interest rate of -0.1% to the policy rate (as ¥1 trillion to support for Of the ¥1 trillion, to of 27/04/2020). small and mid-sized include measures firms (as of improving medical 10/03/2020) schools and support to working ¥500 billion in loans parents on leave and loan guarantees because of school by state-backed Japan closures (as of Finance Corp. for small 10/03/2020) businesses hit hard by the virus outbreak (as ¥15.3 billion to set of 13/02/2020) up medical clinics across the country for outpatients feared to be infected with the virus (as of 13/02/2020) Korea $230.6 billion A total of 277 trillion won worth of policy package including the Total: $28.8 billion BOK: -0.2% in rd (277 trillion won) 3 supplementary budget has been prepared by the government 2020 as of to overcome COVID-19 (as of 03/07/2020). Measures include: The Bank of Korea The BOK to provide 16/07/2020 150,000 private Expand financial (BOK) broadened the additional financial sector job creation support for ventures range of securities support of 5 trillion Government: program (as of and startups in “untact” eligible for open market won to SMEs affected 0.1% in 2020; 11/06/2020) and bio areas by over operation transactions by Covid-19 through the 3.6% in 2021 to expand liquidity Bank Intermediated (as of 2.1 trillion won to promote post COVID- supply channels Lending Support 01/06/2020) (09/04/2020) Facility (14/05/2020) 19 growth engines (as of 11/06/2020) The BOK to implement The BOK launched a
Korea Asset the “Payment and new lending scheme, Settlement Policy the Corporate Bond- Management Corporation (KAMCO) Response to the Backed Lending Facility to operate an over 2 Spread of COVID-19”, (CBBLF), as a safety
trillion won worth of where the ratio of net for businesses, corporate asset buying collateral for banks and non-bank program (as of guaranteeing net financial institutions. , it 11/06/2020) settlements will be shall be operated with a lowered by 20 ceiling of 10 trillion Additional 4 trillion percentage points (from won and a term of won to provide a total 70% to 50%). As a three months of 5 trillion won through result, the amount of (16/04/2020) an special purpose collateral financial vehicle from July, (1 institutions are required The BOK increased the trillion won of the 5 to pledge with the BOK ceiling on the Bank trillion won to be will be reduced by 10.1 Intermediated Lending financed with the Key trillion won which will Support Facility from 25 Industry Support Fund) have the effect of trillion won to 30 trillion (as of 19/06/2020) providing an equivalent won, to extend financial amount of liquidity to assistance to business KRW35.3 trillion proposed 3rd supplementary budget to overcome the financial market owners and to SMEs economic crisis and prepare for post-covid19 economy (as of (31/03/2020) affected by Covid-19. 11/06/2020), including the following measures: Five trillion won (10 • KRW3.7 trillion to • KRW11.4 trillion • KRW500 billion to The BOK lowered the trillion won in bank base rate by 50 bps loans) will be provided boost domestic revenue adjustments expand social from 1.25% to 0.75%, as funding to business demand, exports and support tax safety nets for low deductions income and effective 17/03/2020; owners and to SMEs and local by 25 bps from 0.75% that are suffering from • KRW1.9 trillion vulnerable groups economies to 0.50% on difficulties in the finance emergency 28/05/2020 procurement of raw reliefs for SMEs • KRW2.5 trillion for • KRW5.1 trillion for materials and parts K-Covid19 Korea New Digital BOK to temporarily from China and that are • KRW3.1 trillion response model provide an “unlimited” having trouble in and Green Deals, emergency liquidity improvement and amount of money to exporting to China, as expansion of support for key disaster eligible banks and other well as to those in the employment and industries and management financial institutions for service industry, such skills development companies three months through as tourism, restaurants
repurchase agreements and distribution • KRW8.9 trillion (as of ) (27/02/2020) expansion of 26/03/2020
employee retention
support and launch of Other covid-related
Emergency BOK measures are
Employment Stability found here
Subsidy
KWR226.4 trillion from economic actions taken by Emergency Economic Council and Central Economic Headquarters from 18/03/2020 to 28/05/2020
To create 1.56 Financial support million public sector package (50 trillion jobs (14/05/2020) won) to provide liquidity for small merchants and SMEs and to help stabilize financial markets (as of 19/03/2020). The package was expanded to 100 trillion won (as of 29/03/2020) to financing support for businesses and restoration of stability in the corporate bond market, stock market, and short-term money markets
Emergency relief payments (14.3 trillion won), and payment reduction/deferrals on social security contributions (0.9 trillion won) (as of 30/03/2020)
Export financing support (6 trillion won), venture and startup financing (1.9 trillion won) and SMEs support (2.2 trillion won) (as of 08/04/2020)
Key Industry Protection Fund to protect employment (40 trillion won), emergency- employment security measures (10.1 trillion won) and 35 trillion won added to financial support package (as of 22/04/2020)
Expand financial support for small businesses and enterprises (16.4 trillion won)
To provide extra support for industries that are hard-hit by the pandemic (auto-part suppliers, medium- sized ship builders, textile makers, exhibition businesses and sports services providers) (28/05/2020)
Mexico $25.3billion To finance flagship To extend P3 million To support energy, Total: $32.8 billion BOM: between (622,556 million) projects such as loans for small health, security and -8.8% to -4.6% peso) As of airport and refinery businesses in the social programs The Banco de México in 2020; (BOM) lowered the between 22/04/2020 formal and informal target for the overnight -0.5% to 4.1% To create 2 million economy interbank interest rate: in 2021 jobs o by 25 basis points to (as of 7% (13/02/2020) 05/06/2020) o by 50 bps to 6.5% ( 20/03/2020) o by 50 bps to 6% (21/04/2020) o by 50 bps to 5.5% (14/05/2020) o by 50 bps to 5% (25/06/2020)
The BOM approved additional measures to provide liquidity to improve the functioning of domestic markets, strengthen the economy’s credit channels, and foster an orderly functioning of the debt and foreign exchange markets in Mexico. These measures support the functioning of the financial system for up to 750 billion pesos (21/04/2020)
The BOM reduced by 50 billion pesos the amount of the monetary regulation deposit held by commercial and development banks and that is mandatorily deposited on a permanent basis at the Central Bank. These resources will improve the banks’ liquidity and capacity to grant credits and to maintain or expand their credit lines (20/03/2020)
The bank will also adjust the ordinary additional liquidity facility interest rate, conduct US dollar auctions, and to collaborate with the Ministry of Finance to strengthen government debt market makers program (20/03/2020)
Russia $113.6 billion As of 02/06/2020, $71.7 billion (5 trillion roubles) recovery plan Total: $6.4 billion Ministry of (8.1 trillion through 2021 to offset economic damage from the covid-19 Finance: -5% in roubles) pandemic. Measures include: The Bank of Russia In order to provide 2020 (as of Support for small and Higher social (BOR) cut the additional aid to SMEs, 12/05/2020) medium-sized payments for families, key rate: the BOR has approved businesses through tax and for medical staff • by 50 bps to the decision that Central bank: holidays and government working with 5.50% (24/04/2020) beginning on 27 April -4.5% to backed cheap loans, coronavirus patients, • by 100bps to 4.5% 2020 the interest rate -5.5% in 2020; (19/06/2020) on BOR loans granted 3.5% to 4.5% in To implement structural • by 25bps to 4.25% to assist SME lending, 2021; 2.5% to changes to Russia’s (24/07/2020) including for urgent 2.5% in 2022 labour regulations needs to support (24/07/2020) designed to support On 24/04/2020, and maintain more flexible working 10/04/2020, employment, will patterns once mobility 03/04/2020, the be decreased from restrictions are lifted BOR approved 4.00% to 3.50% As of 20/04/2020, stated support package amid pandemic estimated additional measures (24/04/2020). The same to be worth $41.9 billion (3 trillion roubles). Some measures to protect households, was further decreased government announced measures include: support lending from 3.50% to 2.50% on 19/06/2020 and As of 30/04/2020, the As of 30/04/2020, to economy, and temporarily ease 2.5% to 2.25% on government will 577.5 million AML/CTF and foreign 27/07/2020) allocate: roubles for a pilot project in nine exchange control The BOR establish a 400 billion roubles regions on attracting private Extension of various new SME lending worth of loans with an medical regulatory easing support facility with interest rate of no more organisations for measures that were the established that 5% for enterprises providing medical scheduled to expire by aggregate limit (1,100 backbone help to citizens over 01/07/2020 to of 500 billion roubles. companies that provide 65. 30/09/2020 (as of As part of the specified aggregate limit, jobs to a large number 26/06/2020) up to 150 billion rules of people) As of 13/05/2020, 10.2 billion will be allocated to support bank lending Companies in a risk roubles and 41.7 to SMEs to ensure group (resolution on billion selection guidelines yet roubles allocated uninterrupted fulfilment to be signed) will be for incentive of their obligation supported with payments for all to pay wages. subsidies to individuals involved (27/03/2020) in medical care for compensate for the coronavirus cost of production, patients provision of work and services, tax and advanced payment deferrals, as well as state guarantees for restructuring the existing loans and bonds and the issuing of new ones
Allocation of 2 billion roubles to the budget of the Russian regions for replenishing the reserves of state microfinance and regional guarantee organisations
12 billion roubles to support housing developers and 30 billion roubles for resolving the problem of deceived co- investors in construction projects 15 billion roubles to the Russian Foundation for Technological Development, to fund loans of companies that produce or supply goods required for fighting the spread of the coronavirus. Other projects to receive funding include projects focusing on the implementation of advanced technology, development of new products and import substitution.
Saudi $43.6 billion $178.7 million (670 $4 billion (15 billion Total: $26.7 billion Arabia (163.4 billion million riyal) to ease riyal) earmarked for riyal) loan requirements to the health sector to The Saudi Arabian SAR 50 billion riyal support projects for combat the Monetary Authority ($13.3 billion) injection 192 companies with coronavirus (SAMA) has decided to enhance banking over 20,000 employees pandemic (as of to cut the repo rate by liquidity and enable across different 08/04/2020) 50 bps from 2.25% to banks to continue industries (as of 1.75% and the reverse providing credit 14/07/2020) repo rate by 50 bps facilities for the private from 1.75% to 1.25% sector (as of Government to offer 94 on 03/03/2020. 01/06/2020) agricultural investment opportunities to the SAMA further cut its SAMA to prepare a private sector (as of repo rate by 75 basis 50-billion riyal ($13.3 01/07/2020) points from 1.75% to billion) package to 1.00 % and the help banks and SMEs To start a tourism reverse repo rate by cope with the development fund with 75 basis points from economic impact of the an initial $4 billion (15 1.25% to 0.50% on coronavirus (as of billion riyal) investment 03/16/2020 20/03/2020) (as of 22/06/2020) SAMA has decided to $986.7 billion (3.7 increase the purchase billion riyal) from Saudi limit of atheer-enabled Industrial Development cards from SAR 100 to Fund to support 538 SAR 300 for a single industrial enterprises transaction with no impacted by Covid-19 need to enter PIN (as of 10/06/2020) (03/18/2020); and allowed top-up of the Additional initiatives as monthly ceiling limit for of 15/04/2020: e-wallets up to SAR o $13.3 billion (50 20,000 to boost digital billion riyal) to payment transactions expedite payment of during the pandemic the private sector (25/03/2020) dues o Offering a 30% discount on the value of electricity bill for consumers in the commercial, industrial and agricultural sectors for a period of two months (April - May) o optionally allowing subscribers in the industrial and commercial sector to pay 50% of the value of the monthly electricity bill for the months (April, May, and June) o to support qualified self-employed individuals by paying a minimum amount of salaries to them. o Rapid activation of Council of Ministers Resolution No. (649) of Dhul-Qi'dah 13, 1440 AH to take into account the general principles and rules for putting out to tender works and purchases and giving preference to local content and SMEs, which would increase the economic mobility in the local market and direct demand towards local products and services.
$2.4 billion (9 billion riyal, as of 03/04/2020) for employers to retain jobs (e.g., the employer may apply for compensation of 60% of the worker’s registered wage for 3 months up to 9,000 riyal monthly).
$18.7 billion (70 billion riyal, as of 20/03/2020) to help businesses, with measures such as: o Allowing business owners to postpone VAT, excise tax, and income tax payments for 3 months o Cancellation of expat fees (government charges for hiring expatriates and obtaining visas for their dependents) for 3 months
South $27.7 billion The R500 billion fiscal support package combines revenue and Total: $16.6 billion SARB: Africa (500 billion rand) spending measures, as well as loan guarantees, as follows: -7.3% in 2020; As of 30/04/2020 R200 bn for Credit R50 bn for support South African Reserve 3.7% in 2021; Guarantee Scheme to vulnerable Bank (SARB) has 2.8% in 2022 households for 6 taken the following (as of R100 bn for job months measures to limit the 23/07/2020) creation and support impact of covid-19 to for SME and informal R20 bn for health the economy: Central bank: business and other frontline growth to services Cut the repo rate by contract by R70 bn for measures 100 bps to 5.25% 0.2% in 2020 for income support R20 bn for support effective 20 March (as of (Further tax deferrals, to municipalities 2020; by 100 bps to 19/03/2020) SDL holiday and ETI 4.25% on 14/04/2020; extension) by 50 bps to 3.75% on 21/05/2020; by 25 bps R40 bn for wage to 3.50% on protection 23/07/2020
Provide liquidity available to the banking sector by increasing the size and duration of repo facilities and by purchasing government bonds (25/03/2020)
As of 30/04/2020: • Relaxing regulatory requirements to support the flow of credit to households and businesses • Introducing temporary payment holidays and other measures to support debtors.
The SARB estimates that the monetary and financial sector policy elements of the package of measures will inject more than R300 billion into the economy
Turkey $51.5 billion Total amount of government support is approximately 350 billion Total: $23.4 billion (350 billion liras) liras, of which direct support amounts to more than 252 billion liras and the rest are via deferred loans and maturing principal interest The Central Bank of As of 17/03/2020, the payments (as of 05/20/2020) the Republic of Turkey central bank offered (CBRT) has reduced banks targeted Earlier 200 billion Turkish lira government stimulus package, including its reduce the policy additional liquidity announcement: measures on: rate (one-week repo facilities to secure $28.7 billion Tax postponement, Cash support of auction rate) by 100 uninterrupted credit (200 billion liras) short-time working 1,000 liras to each bps from 10.75% to flow to the corporate As of 25/04/2020 allowance, minimum of 4.4 families 9.75% on 17/03/2020; sector. Measures wage support, and by 100 bps from regarding rediscount other measures to 1,000 liras each to 9.75% to 8.75% credits for export and preserve commercial those who are not (22/04/2020); by 50 foreign exchange life covered by the bps from 8.75% to earning services: support package 8.25% on 21/05/2020 o extended maturities but lost their for repayments of incomes and jobs As of 17/03/2020, the rediscount credits up during the crisis CBRT will: to 90 days, which is Provide banks with as corresponding up to Earlier The $15.4 billion Starting a "periodic much liquidity as they $7.6 billion announcement: Economic Stability program" to give need through intraday o extended maximum $15.4 billion Shield to: healthcare at home and overnight standing duration for export As of 19/03/2020 o support delay in for people above facilities commitment loan and tax the age of 80 who fulfilment of said payments live alone Inject liquidity to the rediscount credits to o increase pension market through repo 36 from 24 months pay, support auctions in days o extended maximum businesses needed maturities for o reduce value added rediscount credits to tax on domestic air Increase liquidity limits 240 days from 120 travel of primary dealers in days for short-term o defer social security the framework of open credit utilization, and payments by 6 market operations to 720 days for months for the retail, longer-term credit steel, automotive Allow conventional utilization and hospitality swap auctions with 1, industries, among 3 and 6-month o On 31/03/2020, the others maturities, which are CBRT additional currently available measures to secure against US$, to also uninterrupted credit be held against euros flow to the corporate and gold sector, and broadly support the goods and FX requirement ratios services exporting will be reduced by 500 firms affected by the bps in all liability types pandemic. In particular and all maturity to facilitate goods and brackets for banks that services exporting meet real credit growth firms’ access to finance conditions. This is and support expected to provide sustainability of $5.1 billion gold and employment, Turkish FX liquidity to banks. lira-denominated rediscount credits for On 31/03/2020, the export and foreign CBRT put additional exchange earning measures to (i) services will be strengthen the extended. A total limit monetary transmission of TRY60 billion ($9.1 mechanism by billion) has been boosting the liquidity of defined for the credits, the Government and will have an Domestic Debt interest rate that is 150 Securities market and bps lower than the (ii) enhance banks’ CBRT’s policy rate. flexibility in Turkish lira and foreign exchange liquidity management
On 17/04/2020, the maximum limit for the ratio of the OMO portfolio nominal size to the CBRT analytical balance sheet total assets has been revised from 5% to 10%
Following measures undertaken on 17/03/2020, banks that met real credit growth conditions for the first time were provided with approximately $9.2 billion of liquidity.
As of 20/06/2020, the CBRT has decided to temporarily (until the year end) suspend the enforcement of the rule of having adjusted real loan growth rate below 15% for the banks with a real annual loan growth rate above 15% in order to be able to benefit from reserve requirement incentives.
United $540.6 billion £1.3 billion £700 million total £1.5 billion to Total: $732.8 billion BOE: -9.5% in Kingdom (£446.4 billion) investment to support during the protect cultural, arts 2020; 9% in deliver homes, pandemic for bus and and heritage The Bank of England New Term Funding 2021; 3.5% in infrastructure and tram services institutions (BOE) reduced the Bank scheme with additional 2022 (as of jobs to help fuel a (08/08/2020) (05/07/2020) Rate by 50 bps to incentives for SMEs to August 2020) green economic 0.25% on 10/03/2020 offer 4-year funding at or recovery £20 million to improve £131 million funding and further by 15 bps to close to BOE rate (04/08/2020; small business to University of 0.1% on 19/03/2020 (0.1%).This is expected 29/06/2020). leadership and Oxford and Imperial to provide more than Subsequent problem-solving skills College London to Increase the BOE’s $120.2 billion (£100 announcements (03/08/2020) accelerate their holdings of UK billion) in term funding include funding for work on 2 vaccine government bonds and (as of 10/03/2020) schools, colleges, £20 million in new candidates sterling non-financial courts and prisons. grants to boost (23/07/2020) investment-grade The BOE has reduced recovery of small corporate bonds by the UK countercyclical £350 million is being businesses New state-of-the-art $233.2 (£200 billion) to capital buffer rate to 0% made available to (30/07/2020) centre to scale a total of £645 billion, from 1% of banks’ cut emissions in up Covid-19 financed by the exposures to UK heavy industry and £2 billion to boost vaccine and gene issuance of central bank borrowers with drive economic cycling and walking therapy reserves (19/03/2020); immediate effect. The recovery from during pandemic manufacturing gets and by an additional release of the coronavirus (28/07/2020) £100 million $125.5 billion (£100 countercyclical capital (22/07/2020) investment; billion) on 17/06/2020 buffer will support up to Bounce-Back plans for additional £4.7 $244.8 billion (£190 £11.8 billion cash Northern Ireland's tech million for new The BOE and Prudential billion) of bank lending to flow boost to sector, including training facilities Regulation Authority businesses (11/03/2020) taxpayers from launch of an £8 million and an online (PRA) to implement deferral of Self Digital Trade Network learning platform to measures aimed Creation of the joint HM Assessment tax for Asia Pacific boost vaccine and alleviating operational Treasury and BOE’s payment in July (20/07/2020) cell and gene burdens on PRA- Covid Corporate (14/07/2020) therapy skills regulated firms and Financing Facility which (23/07/2020) BOE-regulated financial is designed to support £5.2 billion Up to £30 billion for market infrastructures in liquidity among larger investment to create ‘Plan for Jobs 2020’ as £3 billion of funding the wake of the Covid- firms (20/03/2020) around 2,000 new of 08/07/2020 to the NHS in 19 outbreak flood and coastal England to get (20/03/2020). Creation of the defences (14/07/20 £10 million Kick- ready for winter Coronavirus Business 20) starting Tourism (17/07/2020) The PRA welcomed the Interruption Loan (CBIL) Package 03/07/2020 decisions by the boards Scheme run by £40 million Green The temporary of the large UK banks to government-owned Recovery Challenge £320 million of support scrapping of VAT suspend dividends and British Business Bank. Fund will bring to more than 320 early- on PPE has been buybacks on ordinary The CBIL is intended is forward funding to stage, high-growth extended until the shares until the end of intended for SMEs help charities and firms through Future end of October - 2020, and to cancel (20/03/2020) environmental Fund (30/06/2020) saving care homes payments of any organisations start and businesses outstanding 2019 work on projects Zoos and aquariums in dealing with the dividends in response to across England to England are set to coronavirus a request from BOE restore nature and receive up to £100 outbreak £155 (31/03/2020). tackle climate million to help mitigate million (10/07/2020) change. the impacts of the (30/06/2020) coronavirus pandemic £105 million for (27/06/2020) interim housing to £73.5 million keep rough investment in £38 million support sleepers safe and automotive sector to package for debt off the streets cut carbon advice providers during coronavirus emissions helping people affected pandemic (23/06/2020) by Coronavirus (24/06/2020) (10/06/2020) £2.2 billion in direct £5 million funding funding to Wales in given to mental order to manage the £35 million to protect health community impact of critical freight routes projects coronavirus; covering the Channel, 29/05/2020) additional £58 the Short Strait, the million to help the North Sea and routes New funding devolved between Great Britain package of £300 administration in and Northern Ireland million for local Scotland respond to (18/05/2020) authorities to the challenge of the support new test coronavirus. £1.6 billion confirmed and trace service (16/05/2020) to protect Transport for (22/05/2020) London (TfL) services (15/05/2020) A new £600 million Infection Control The £17 million Fund to tackle the scheme includes spread of services in and out of coronavirus in care Cairnryan (24/04/2020) homes. (15/05/2020) The government has set up new 100% £16 million cash government backed injection for the loan scheme for small Rugby Football business, allowing League to borrowings between safeguard the £2,000 and £50,000 immediate future of interest free for the first the sport for the 12 months communities it (24/04/2020) serves (01/05/2020)
£17 million, as of £76 million extra 24/04/2020 new funding to support scheme will support survivors ferry operators on 5 of domestic abuse, routes between Great sexual violence and Britain and Northern vulnerable Ireland; and £10.5 children and their million emergency fund families and victims to support lifeline transport links to the of modern slavery Isle of Wight and the (02/05/2020) Isles of Scilly (24/04/2020) £12 million extra support to keep £1.25 billion, as of children at risk of 20/04/2020) package neglect or abuse for innovative firms hit safe during the by the coronavirus, coronavirus including 500 million outbreak investment for high- (24/04/2020) growth companies and 750 million grants and £1.6 billion extra loans for SMEs funding for councils focusing on research across England for and development. continued delivery of essential £10 million fund for services, support England’s fishing and the vulnerable, aquaculture assist the public sectors (17/04/2020) health workers and fire and rescue £5.4m new services government funding for (18/04/2020) people seeking help with housing, debt, £155 million discrimination and additional funding employment problems for Scotland council will benefit from a workers who are at (04/05/2020) the forefront of local efforts in keeping Bounce Back Loan people safe and Scheme (BBLS) keeping public enables smaller services open businesses to access (18/04/2020) finance more quickly during the coronavirus £14.5 billion of outbreak. Government coronavirus guarantees 100% of emergency the loan nd there won’t response fund for be any fees or interest public services to pay for the first 12 including: months. o £6.6 billion of 27/04/04 support to our health services £167 million, as of o £1.6 billion for 01/04/2020) new local authorities funding over 3 months under the new Covid- o £0.9 billion to 19 Bus Services cover extra Support Grant. measures such as food packages for £9 billion, as of extremely 26/03/2020) grants for clinically about 3.8 million self- vulnerable people employed individuals. o £3.5 billion to In particular, direct ensure vital rail cash grant of 80% of services their profits, up to o £1.0 billion for the £2,500 per month for at Scottish least 3 months government
£7 billion as of o £0.6 billion for the 20/03/2020) Welsh business and welfare government package, including: o £0.3 billion for the o Coronavirus Job Northern Ireland Retention Scheme Executive with the government paying up to 80% of a £750 million extra worker’s wages, up to coronavirus funding £2,500 per worker to support frontline each month charities (backdated to 1 March (08/04/2020) and will be initially open for 3 months). The government o Deferred VAT announced that it payments due between 20 March will make extra and end June funding available o Coronavirus Business for schools to cover Interruption Loan the unique Scheme to be interest challenges and free for 12 months financial costs of o Increased standard the coronavirus rate in universal credit outbreak and tax credits by £20 (07/04/2020). a week for one year Additionally, the from 6 April (claimants government will be up to £1040 announced that better off) disadvantaged o Nearly £1bn of children across additional support for England are set to renters through receive laptops and increases in the tablets as part of a housing benefit and push to make universal credit remote education accessible for On 27/03/2020, the pupils staying at government home during the announced that it will coronavirus also cover employer outbreak National Insurance and (19/04/2020) pension contributions of furloughed workers – on top of 80% of salary under the job retention scheme
$420.6 billion (£350 billion, as of 17/03/2020) of which:
£330 billion in loans for businesses
£20 billion in other aid
Business rates holiday to all firms in the hospitality sector
Funding grants between £10,000 to £25,000 for small businesses
3-month mortgage holiday for mortgage lenders having financial difficulty United $3.08 trillion $2.2 trillion stimulus package (as of 27/03/2020), including: Total: $3 trillion ($2.3 States o Up to $1,200 assistance for individuals trillion in loans/facilities, o Extra $600 a week in unemployment insurance for those without as of 09/04/2020; and $700 billion treasury work and mortgage-backed o $450 billion bail-out fund for businesses, cities and states securities). Details of /updates on related $200 billion liquidity $8.3 billion emergency spending measures are as through deferral of tax follows: payments for certain bill to prevent the spread of the individuals and coronavirus and $500 billion Municipal The Fed has been businesses negatively develop vaccines for Liquidity Facility supporting the flow of impacted by the outbreak disease (as of 03/06/2020 credit to employers, (as of 11/03/2020) 06/03/2020) consumers, and To bolster the businesses by Estimated $192 effectiveness of the establishing new billion for the Small Business programs that, taken Families First Administration's together, will provide up Coronavirus Paycheck Protection to $300 billion in new Response Act Program (PPP), the financing (as of (18/03/2020) Federal Reserve is 23/03/2020), including supplying liquidity to establishment of the As of 24/04/2020, As of 24/04/2020, [of participating financial following facilities to $484 billion for the $484 billion for institutions through term support credit to measures under the measures under the financing backed by households and Paycheck Protection Paycheck Protection PPP loans to small businesses: Program and Health Program and Health businesses. o Primary Market Care Enhancement Act, Care Enhancement (28/07/2020) Corporate Credit Act (24/04/2020)], $75 Facility of which $310 billion will billion for hospitals, To support the smooth o Secondary Market be for loans to small $25 billion to establish functioning of markets Corporate Credit businesses a national testing that are central to the Facility regime, $60 billion in flow of credit to o Term Asset-Backed disaster aid households and Securities Loan businesses, the Fed will Facility Signed presidential increase its holdings of o Money Market Mutual executive orders for a Treasury securities by Fund Liquidity Facility deferment on payroll at least $500 billion o Commercial Paper taxes, an extension of and of mortgage-backed Funding Facility unemployment insurance securities by at least $200 billion (as of and a moratorium on $600 billion Main Street 15/03/2020). rental evictions New Loan Facility Additionally, the Fed 28/07/2020 (09/08/2020) announced that it will include purchases of
agency commercial mortgage-backed securities in its agency The Fed announced mortgage-backed measures related to the security purchases discount window, (23/03/2020) intraday credit, bank capital and liquidity Federal Reserve cut buffers. The Fed has interest rates to a target also reduced the range of 0% to 0.25% reserve requirement (as of 15/03/2020). The ratios to 0% effective 26 Fed previously cut March to support interest rate by half a lending to households percentage point during and businesses an emergency meeting (15/03/2020). on 3 March 2020 The Fed offered regulatory reporting The Fed has relief to small financial undertaken other institutions affected by regulatory and the coronavirus supervisory measures (26/03/2020). The Fed (link) also announced that it will delay its revised control framework to reduce operational burden of institutions (31/03/2020)
The Fed announced to temporarily decrease tier 1 capital requirements of holding companies by approximately 2% in aggregate (current minimum ratio at 3%) (01/04/2020)
Sub-Saharan Africa Angola $959 million A total of $838.6 $0.5 million (AOA Total: $534.9 million million (AOA 488 315 million, as of billion, as of 09/04/2020) has On 27/03/2020, the On 03/04/2020, the 09/04/2020) has been been allocated to Banco Nacional de BNA announced an allocated for initiatives ensure basic food Angola (BNA) reduced update of a measure targeted at business baskets for more the rate on its 7-day introduced in 2019, which include: credit than 60,000 permanent liquidity establishing favourable lines for family farming, vulnerable homes absorption facility from financial conditions for SMEs, family 10% to 7%. granting credit to cooperatives, A Social Monetary producers of certain microfinance Transfer Extension of the goods considered institutions, etc. there Programme starting $178.3 million essential. are also plans to in May, to target 1.6 (AOA100 billion) public reduce administrative million families securities deposit facility As of 20/04/2020, the below the poverty originally for SMEs to BNA has announced bureaucracies to fast line over the next also include to large procedures for the sale track licenses three years. companies in the of foreign currency by productive sector companies in the oil The government has The government (07/05/20) sector to direct foreign relaxed property tax has purchased 25 exchange transactions payments and social tons of biosafety Activation of the on the interbank security contributions. equipment and overnight lending market; measures medicines from facility, with up to directing financial In addition, it has South Africa. $178.3 million institutions to grant introduced extended (AOA100 billion) customers a 60-day tax filing deadlines and As of 29/7/2020, (07/05/20) moratorium for the exemptions for specific the government fulfilment of their credit industries. announced obligations; and additional health temporary exemptions expenditure of on limits on the about $40 million. importation of food, Also, brought in medicine and biosafety medical experts materials to reduce from Cuba at an bureaucracy in the estimated cost of licensing procedures for $80 million. the import of essential goods.
The BNA will provide a liquidity line to discount Non-Readjustable Treasury Bonds to the amount of AOA100 billion ($178.3 million) for 100 companies in the productive sector, each of which can, at the same time, discount up to AOA 1 billion.
Benin $320million Approved $128.5 The government N/A: regional bank million (CFAF 74.12 has proposed a BCEAO billion) to support package of businesses in the CFAF60 billion informal sector (as of ($104million) for 10/06/2020) medical response and CFAF50 billion Extension of tax filing ($87million) for deadlines, with cash transfers to possible future credit vulnerable citizens for those who had (as of 16/07/20) already paid penalties for late filing (as of 26/06/20)
Tax deductible donations towards covid-19 response (as of 26/06/20)
Botswana $170 million Government has set up a $170 million (2 billlion pula) relief fund. Total: $160 million Ministry of Finance and Government As of 30/04/20, Bank of Economic announced the Botswana (BoB) has: Development: following means of -13.1% in 2020; assistance to Reduced bank rate by 3.9% in 2021 businesses: 50 base points, from (as of 30/04/20) • Tax concessions to 4.75% to 4.25%. businesses in eligible sectors. Reduced the primary • Access to credit to reserve requirement support ongoing from 5% to 2.5% operations in effective 05/13/2020. conditions where This is expected to credit becomes more inject liquidity of difficult to obtain approximately 1.6 • Expedited VAT billion pula into the refunds to businesses banking system • Government institutions settle Other measures purchase orders within already implemented 5 days and parastatals by the BOB, which form part of the monetary to pay within 24 hours. policy and regulatory Government to pay all response to the outstanding arrears for COVID-19 economic invoices within 2 fallout are: weeks. (a) the cost of accessing overnight funding by licensed banks from the BOB Credit Facility is provided at the prevailing Bank Rate without the punitive 6 percentage points above the Bank Rate that prevailed before;
(b) repo facilities that were available only on overnight basis are now offered against eligible securities with maturity of up to 92 days;
(c) the collateral pool for borrowing by licensed commercial banks from the BOB has been extended to include all corporate bonds listed and traded on the Botswana Stock Exchange.
(d) the minimum capital adequacy ratio for banks was reduced from 15% to 12.5%; this should provide capital relief amounting to approximately $27 million (326 million pula) for the entire banking industry; and
(e) the BOB will also generally exercise regulatory forbearance in relation to assessment of non- performing loans and determination of expected credit losses, for regulatory and compliance purposes.
Cabo $91.7 million Proposed revised CVE 3 billion ($29.8 The government As of 23/04/2020: BCV: -4% to Verde budget in excess of million) to support will reallocate -6% in 2020 (as the initial budget by businesses in loan CVE 76 million In late March, the The central bank also of 27/04/2020) CVE 2million guarantees, tax ($0.7 million) to an central bank decided to called on banks to grant ($20,315), to cater facilities (as of emergency plan loosen the monetary a moratorium on loans for economic and 15/04/2020).and a covering new heath policy stance and to obligations to borrowers social recovery from CVE 4 billion ($39.4 care needs (as of increase liquidity in the in good standing with the pandemic (as of million) credit line for 15/04/2020) banking system. Key their payment record as 01/07/2020) all firms (as of measures included a of end-March 2020. 13/04/2020). As of 23/04/2020, reduction in rates as CVE 2.2 billion follows: the policy rate On April 1, the ($21.7 million) for by 125 bps to 0.25%, authorities introduced a the most vulnerable the minimum reserve moratorium on Measures requirements from 13 insurance payments comprise: (i) to 10%, and the and loans repayment income overnight deposit rate during April-September compensation to by 5 bps to 0.05%; and 2020 for household, provide financial the setting up at the companies, and non- support to central bank of a long- profit associations, as individuals term lending instrument well as the SMEs. operating in the for banks. informal sector; (ii) social inclusion The Banco de Cabo emergency Verde (BCV) also measures for implemented prudential vulnerable people measures, including the without income; (iii) reduction in capital social inclusion adequacy ratio and income, with provision for banks support from the depending on requests World Bank ; (iv) by borrowers to place a support to moratorium or microfinance forbearance on loan institutions to repayment for three support interest- months. free loans to vulnerable households and; (v) care for the elderly with food assistance and other financial support.
Djibouti $5.5 million As of 06/04/2020, the On 01/04/2020, an The central bank has (DJF 1 billion) Ministry of Budget has emergency and requested credit announced that it is solidarity fund was institutions to grant extending the deadline established by moratorium of 3-6 to submit tax reports presidential decree months to customers by at least 15 days. to finance the facing difficulties. It also purchase of plans to set up a medicines and guarantee fund to cover medical equipment some part risks faced and to assist those by SMEs, and reduced companies and solvency ratio workers most requirements for banks affected by the to be lower than crisis. The state regulatory levels. added DJF 1 billion (around $5.5 million).
Ethiopia $1.9 billion $542.2 million (18 billion birr) of 28 billion birr approved $630 million (21billion As of 14/05/20 the (66.6 billion birr) supplementary budget as of 10/04/2020 is to be allocated to birr) support for banks central banks has overcome current economic challenges; $1.4 billion (48.6 billion birr) to address the granted priority access approved on 29/05/20, to pay for food support and procure medical expected liquidity to foreign exchange equipment that supports against COVID-19 shortage importers and from expected lower producers of COVID- The government has initially availed $150,600 (5 billion birr) to deposits and loan 19-related goods. It has undertake COVID-19 preparedness tasks (as of 14/04/2020). On 3 collection, and to make also raised limits for April, the Prime Minister’s office announced a COVID-19 Multi- available working mobile money transfer, Sectoral Preparedness and Response Plan to be implemented over capital for sectors relaxed directives on the next 3 months and will require $1.64 billion in funding. impacted by the non-performing loans to On April 30, the COVID-19 pandemic allow more flexible Council of Ministers (March-April) repayment schedules approved forgiveness for affected sectors of of all tax debt prior to the economy. 2014/2015, a tax amnesty on interest Relaxing of the central and penalties for tax bank’s non-performing debt pertaining to loan directive to allow 2015/2016-2018/2019, banks to reschedule and exemption from loan payments for personal income tax highly affected sectors withholding for 4 like horticulture, hotels, months for firms who and tourism among keep paying employee others (March-April) salaries despite not being able to operate due to Covid-19.
Ghana $2 billion First tranche of $107 million BOG has cut its policy $552 million (GH¢3 The BOG (GH¢11.6 billion) COVID-19 relief (GH¢600million) rate by 150 bps to billion) facility to estimates that bond was stimulus package for 14.5% (as of support industry, growth could released on SMEs and $178 18/03/2020) and reserve especially in the slow to 5%, and 15/05/20 by Bank million (GH¢1billion) requirement ratio by 2% pharmaceutical, in worst case of Ghana (BOG) support to industries (as of March 2020) hospitality, service scenario can be on behalf of the (as of 05/05/2020) and manufacturing 2.5% (as of government, the 18/03/2020) programme is The BOG announced sectors (as of worth $1.8 billion As of June the several measures to 28/03/2020) (GH¢10.0 billion). government has mitigate the impact of announced waiver of the pandemic shock, interests and penalties, including lowering the extension of tax filing primary reserve deadlines and tax requirement from 10% exemptions for to 8%, further reduced donations towards to 6% in 15/05/20 for covid-19 and community banks and emoluments of health savings/loans care workers. companies, lowering the capital conservation buffer from 3% to 1.5%, revising provisioning and classification rules for specific loan categories, and steps to facilitate and lower the cost of mobile payments (as of 30/04/2020)
Guinea- $2.1 million CFAF 485 million N/A: regional bank Bissau (CFAF 1.2 ($0.8 million) to BCEAO billion) supply the Ministries of Health, Home Affairs and Defence (as of 30/04/2020)
CFAF 525 million (S$0.9 million) to distribute 20,000 bags of rice and 10,000 bags of sugar throughout the country (as of 30/04/2020)
CFAF 222 million (US$ 0.4 million) monthly increase in government health expenditure 30/07/20
Kenya $2.9 billion $502million (Ksh53.7 billion) for the 8-point economic stimulus Total: $402 million program (as of 23/05/20) for: • Infrastructure: • Education: KSh 6.5 • Health: Ksh.1.7 On 23/03/2020, the The CBK to provide Ksh. 5 billion to billion to the Ministry billion for the Central Bank of Kenya flexibility to banks with hire local labour of Education expansion of bed (CBK) cut interest rates regard to requirements for rehabilitate • SMEs: Ksh 10 billion capacity in our by 100bps to 7.25%, for loan classification access roads, to fast-track payment public hospitals and further by 25 bps to and provisioning for footbridges and of outstanding VAT 7% on 29/04/2020, and loans that were other public refunds and other has been retained as performing on 2 March infrastructure pending of 29/07/30. 2020 and whose • Environment: payments; Ksh 30 . repayment period was Ksh850 million to billion towards The CBK lowered the extended or were enhance the payment of pending cash reserve ratio to restructured due to the provision of water bills in the roads 4.25%, providing pandemic (as of facilities; Ksh 1 sector; Ksh 3 billion additional liquidity of 23/03/2020) billion for flood as seed capital for $331.7 million (Ksh35.2 control measures; the SME Credit billion) to commercial On 15/04/2020, the and Ksh 540 Guarantee Scheme banks (23/03/2020) CBK suspended the million for our • Agriculture: Ksh. 3 listing of negative Greening Kenya billion for the supply The CBK extended credit information for Campaign. of farm inputs maximum tenor of borrowers whose loans through e-vouchers repurchase agreements became non- targeting 200,000 from 28 to 91 days performing after April 1 small scale farmers. (23/03/2020) for 6 months. A new • Tourism: Ksh 2 minimum threshold of billion will be set As of 20/03/2020) the $10 was set for aside to support CBK released $70.3 negative credit renovation of million (Ksh7.4 billion) information submitted facilities and the gains from to credit reference restructuring of demonetisation in bureaus. business operations by actors in this September 2019 to industry. support the government • Manufacturing: efforts in addressing the enforce the policy on pandemic “Buy Kenya Build Kenya” with Ksh. 600 million to purchase locally manufactured vehicles.
As of 23/03/2020, $2 billion stimulus, of which:
KsH 13.1 billion KsH 170 billion for KsH 24 billion for Settling of tax relief, reductions social protection government's and refund (forgone measures pending bills tax revenues) for individuals, MSMEs, KsH 1 billion for corporates health systems strengthening measures As of 28/04/2020, a package of tax measures has been adopted, including full income tax relief for persons earning below the equivalent of $225 per month, reduction of the top pay-as you earn rate from 30% to 25%, reduction of the base corporate income tax rate from 30% to 25%, reduction of the turnover tax rate on small businesses from 3% to 1%, and a reduction of the standard VAT rate from 16% to 14%.
Madagascar $73 million MGA 280 billion ($73 . As of 29/04/2020, the million) stimulus central bank has started package offering to provide liquidity to small businesses the private sector, secure loans at below planning up to MGA620 market rates (as of billion ($163 million) to 18/06/2020) allow banks to defer delayed payments on As of 29/04/2020, key existing loans and measures taken are increase lending to as follows: (i) businesses increased spending on epidemic prevention and control; (ii) cash- transfers and in-kind necessities to the poorest and those unemployed; and (iii) tax relief, suspension of government fees and waived social contributions.
Medicine and medical equipment were exempted from paying import duties (as of 30/07/2020)
Mali $67 million Introduced temporary Government has N/A: regional bank tax incentives like produced a revised BCEAO VAT exemption on budget, allocating utility bills and an additional possible tax rebates on a case-by-case CFAF 40 billion basis (as of ($67 million) for 30/04/2020) health expenditure.
Namibia $436 million As of 01/04/2020, stimulus and Relief Package amounts to N$8.1 As of 17/06/20, Bank of billion ($436 million) Namibia confirmed a Support to businesses Support to reduction in monetary o N$400 million wage households policy rate from 4.25% subsidy for hardest-hit o Emergency to 4% (225 bps total sectors income grant of since the state of o N$3 billion N$750 for emergency was accelerated individuals who declared). repayment of overdue have lost their undisputed VAT jobs. Capped at a On March 26, the refund and N$800 total of N$526 central bank allowed million for pending million banks to grant loan invoices from o Tax-back loan payment moratorium government schemes to tax- (payment holidays) o N$500 million worth of payers and self- ranging from 6 to 24 guarantee at employed who months and relaxed the concessional rate, have lost income, determination on loan scheme for non- up to 1/12th of liquidity risk agricultural small their previous management (reducing businesses and year tax payment, the capital conservation N$200 million for at concessional buffer rate to 0% for at farmers and rate (government least 24 months), and agricultural guaranteed up to postponing the effective businesses N$1 billion) date of implementation o Allowing for capital o Water subsidy of the 25% single repayment during lockdown borrower limit and moratorium (6–24 periods, with concentration risk limit. months) for borrowers water points to be of the Development kept open without Bank of Namibia and a need for a water AgriBank; card (N$10 million o Tax-back loan for first period). scheme to non-mining corporates up to 1/12th of their previous year tax payment, at concessional rate (government guaranteed up to N$470 million) o Relaxing labour regulations by allowing for a reduction of 20%, and up to 50% for hardest- hit industries
3 months extension granted to taxpayers for filing return (as of 15/06/2020)
Nigeria $4.8 billion As of 25/06/20, federal executive council approved a Total: $13.2 billion As of 30/04/2020, the comprehensive N2.3trillion ($1.2 trillion or $3.3 billion from CBN introduced government; $1.1 trillion will be via central bank) 12-month Transit As of 16/03/2020, measures including: Plan with major objective of job creation. Central Bank of Nigeria creating a N50 billion (CBN) cut interest rates ($139 million) targeted As of 30/04/2020, a As of 30/04/2020: of all applicable CBN credit facility and fiscal stimulus package N984 million ($2.7 intervention facilities liquidity injection of in the form of a Covid- million) have been from 9% to 5% for one N3.6 trillion ($10 19 intervention fund of released to year, effective 1 March billion) into the N500 billion ($1.4 Nigeria’s Center for banking system, billion), has been Disease Control Extension of the period including N100 billion approved by the of grace given for the to support the health President to support N6.5 billion ($18 repayment of the loans sector, N2 trillion to the healthcare facilities, million) was by one year on all manufacturing sector, provide relief for distributed for principal facilities, and N1.5 trillion to the taxpayers, and purchasing more particularly intervention real sector to impacted incentivize employers testing kits, opening loans, effective 1 March industries. to retain and recruit isolation centers 2020 staff during the and training CBN also allowed all downturn medical personnel. The Naira has been deposit money banks further devalued as of to consider temporary Import duty waivers for Grant of N10 billion 07/07/20. and time-limited pharmaceutical firms ($28 million) was restructuring of loan will be introduced (As released to the CBN reduced monetary tenor and terms of of 30/04/2020) Lagos State to policy rate by 100 bps to businesses, increase its 12.5% on 28/05/2020 particularly oil and gas, capacity to contain agriculture, and the outbreak. manufacturing companies (as of The President 16/03/2020) ordered an increase of the social N$1.1 trillion ($3 register by 1 million billion) of the Transit households to 3.6 Plan for central bank’s million to help structured lending (as cushion the effect of 25/06/20) of the lockdown
Rwanda $107 million As of 08/06/20, As of 09/04/2020, The National Bank of The NBR directed Expected Economic recovery the government Rwanda (NBR) has put commercial banks to revenue shortfall fund of Frw100 billion has: in place a Rwf50 billion ease loan repayment of 4% ($107million) available ($53.7 million) facility conditions to borrowers of GDP. to SMEs and eligible Introduced a food to increase liquidity of whose income streams distribution have been affected by businesses in worst hit programme commercial banks (as the coronavirus (as of sectors. consisting of the of 19/03/20) 19/03/2020) door-to-door On 09/05/20, granted provision of food As of 09/04/2020, the NBR, in cooperation VAT exemptions on and other supplies NBR has eased loan with banks and telcos, sales on locally made to vulnerable repayment conditions will have zero charges masks, permitted homes at village by allowing for the on mobile money payment of personal and sector level, exceptional transfers. Transfer and income taxes to be reaching (1.1 restructuring of loans limits have been on actual year basis, million, or 10.8% of by banks, lowered adjusted from plus 6 months waiver the population, in reserve ratio by 100 Rwf500,000 to of PAYE for certain 2012) BPS from 5% to 4%, Rwf1,500,000 for Tier 1 teachers and and will also buy back clients (mostly ordinary hotel/tourism workers. The Ministry of bonds at the prevailing citizens) and up to Trade introduced market rate. Rwf4,000,000 for Tier 2 As of 09/04/2020, the price ceilings on clients (as of government has: some goods and a On 30/04/2020, the 18/03/2020) • Extended deadlines cap on the quantity central bank cut the for income tax from of each product an policy rate by 50 bps the 31 March to 15 individual could buy to 4.5%. April and 30 April for per day. large and small businesses, respectively. • Suspended all tax audits until 18 April. • Suspended down payment for the amicable settlement appeals resolution process to 23 April.
Senegal $1.65 billion Fiscal measures up to N/A: regional bank ($1.65 billion FCFA BCEAO 1000 billion (as of 22/04/2020) including:
FCFA100 billion for FCFA78.1 billion to hard-hit sectors such finance additional as tourism and health spending transport, and access to credit guarantee of FCFA69 billion will FCFA 200billion be used to provide urgent food aid and Expedited payment of essential medical unmet obligations to supplies help strengthen firms balance sheets FCFA15 billion will finance the Helping enterprises suspension of utility through postponing tax payments for payments and partial poorer customers write-off of tax debt FCFA12.5 billion for the Senegalese diaspora Seychelles $72.1 million The approved revised state budget for 2020 makes R1.2 billion On 22/06/20, Central Commercial banks, the Government: ($72.1 million) available for spending, a budget revision were made Bank of Seychelles Development Bank of -10.8% in to allow the health department to better deal with the covid-19 (CBS) cut monetary Seychelles and the 2020 (as of situation and to set up measures and policies for the economic policy rate to 3%, after Seychelles Credit Union 07/04/2020) impact of the pandemic (as of 09/04/2020) an initial reduction to have agreed that they 4% in March. Interest will consider a rate on standing credit moratorium of six facility has been months on the lowered to 6%, while repayment of principal 1% for standing and interest on loans to deposit facility. assist businesses in impacted sectors; moratorium can also apply to individual loans with a possibility of restructuring (as of 21/03/2020)
Sierra $123 million Parliament Le298.3 billion of the Le308.8 billion out On 18/03/2020, the Leone approved a supplementary budget of the central bank decided to: supplementary is allocated for supplementary budget as of economic response to budget is allocated o reduce the monetary o create a special credit 27/07/20 worth the pandemic, aimed for health policy rate by 150 bps facility (Le 500 billion Le1.2 trillion at SME financing and expenditure. from 16.5% to 15%, or $51.4 million) to ($123million) providing social safety effective March 19; support production, nets. o extend the reserve procurement and requirement distribution of As of 02/06/20, maintenance period essential goods government from 14 to 28 days to announced tax rebate ease tight liquidity for health workers covering a 3-months period, and plans for an insurance cover for front line workers.
Somalia $12.1 million As of 09/04/2020, notable fiscal policies are the $5 million As of 30/04/2020: earmarked and the $7 million sought under the national preparedness plan. The government’s request for donor support to The central bank is fund its response plan has been approved as of 15/05/20 releasing funding-for- lending support for On 28/04/20, the The Garowe medium and small government granted administration enterprises through partial tax exemption (Puntland State of commercial banks., on basic food imports Somalia) has initially for $2.9 million and full exemption on allocated $100,000 with more in the medical supplies and for health measures pipeline. equipment. to fight the virus (as of 09/04/2020) The central bank is encouraging commercial banks to use excess liquidity to support lending and employ existing CBRs to support remittance inflows.
South $8 million The government As of 17/07/20, the Bank Sudan has allocated $8 of Sudan (BoS): million relief funds, majorly for o reduced bank interest healthcare rate from 13% to 10%. expenditure. o reduced the CRR from 15% to 10%. o Allowed to banks to renegotiate loan terms.
Sudan $912.1 million As of 30/04/2020: Draft regulations on The government forbearance of private has reallocated sector loan repayments $3 million for the for 3 months (as of Multi-hazard 07/16/2020) Emergency Health Preparedness Plan guided by the WHO
SDG 30 billion ($545 million) have been allocated to prevent the collapse of the Sudanese health system
SDG 20 billion ($364 million) to support the families affected by the lockdown measures in Khartoum
On April 15, the government also announced significant increase in the salaries of public sector employees. Uganda $81.3 million As of 29/04/2020, the As of 29/04/2020, As of 29/04/2020: government the government announced measures has: The Bank of Uganda BoU has also worked to: (BoU) on 20 March with mobile money Used part of their announced: (i) BoU’s providers and Expedite repayment of Contingency Fund commitment to provide commercial banks to domestic government in the FY2019/20 exceptional liquidity ensure they reduce arrears to the private budget to finance assistance for a period charges on mobile sector suppliers approximately $1.3 of up to 1 year to money transactions and million of the financial institutions other digital payment Boost the lending Ministry of Health that might need it; (ii) charges. capacity of the state- Preparedness and ensuring that the owned Uganda Response Plan contingency plans of Development Bank to from January to the supervised provide affordable June 2020 financial institutions; credit to support (iii) putting in place a private sector Passed a mechanism to companies to reorient supplementary minimise the likelihood their production budget of about $80 of sound business towards covid-19 million to support going into insolvency response related items critical sectors such due to lack of credit; as health and (iv) waiving limitations Deferment of tax security at the on restructuring of payment obligations for frontline of this credit facilities at the most affected pandemic. financial institutions sectors that may be at risk of Announced a food going into distress. Introduction of tax distribution exemptions for items campaign In April 2020, the BOU used for medical use announced reduction of its Central Bank Support with water and Rate by 1 percentage electricity utilities and point to 8%, further the expansion of reduced to 7% in June labour-intensive public alongside other works programs. measures.
The BOU provided guidelines, applicable for 12 months, on credit relief and loan restructuring to be followed by the Supervised Financial Institutions during the Covid-19 pandemic.
Zambia $610 million As of 25/06/20, As of 29/30/2020: As of 29/30/2020: As of 29/30/2020: government announced the The government has The government The Bank of Zambia issue of a covid-19 announced a release had set up an (BoZ) plans to provide bond of K8billion of 2.64 billion-kwacha Epidemic 10 billion kwacha ($537 ($430 million) the ($141.8 million) to Preparedness Fund million) of medium- proceeds will be clear arrears and pay amounting to 57 term liquidity support to used to reduce the contractors. million kwacha ($3 eligible financial negative impact of million) and had services providers and the pandemic. Import duties on approved a COVID- scale up open-market mineral concentrate 19 Contingency and operations. and export duties on Response Plan with precious metals were a budget of 659 The BoZ implemented suspended to support million kwacha measures to stimulate the mining sector. ($35.4 million). the use of e-money and The government has reduce the use of cash, waived tax penalties 400 doctors and revised the rules and fees on the 3000 paramedics governing the outstanding tax were recruited to operations of the liabilities resulting from fight the COVID-19 interbank foreign CoVID-19, suspended pandemic. exchange market, customs duties and strengthening market VAT on some medical discipline and providing supplies and medical a mechanism to related commodities, address heightened removed provisions volatility, revised loan relating to claim of VAT classification and on imported spare provisioning rules, and parts, lubricants and extended the stationery to ease transitional arrangement to IFRS9. pressure on companies. BoZ reduced monetary policy rate by 225 basis points to 9.25% on 19/05/20.
Zimbabwe $721 million As of 05/06/20, As of 04/30/2020, Total: $260 million government the government announced an have started As of 04/30/2020, the economic recovery administering a central bank has: stimulus package ZW$600 million of ZWL18 billion ($24 million) cash Reduced bank policy Increased private sector ($721million). Out of transfer program rate from 35% to 15%; lending facility by the the stimulus package: that targets 1 central bank from by million vulnerable Reduced the statutory ZW$1.5 billion ($60 ZWL10.6 would be households over reserve ratio on bank million) from ZW$1 provided to productive the next 3 months deposits from 5% to billion to ZW$2.5 billion sectors in form of loan 4.5% facilities. Introduced a ZW$5 ZWL500milllion for billion ($200 million) SME support. medium-term bank accommodation lending $20 million covid-19 facility at 10% rate relief for sports and arts sectors.
Relaxation of import duties on certain items.
Compiled by Overseas Development Institute (ODI). Comments welcome to [email protected] (Sherillyn Raga).