RESPONSE TO

C VID -19
Series 5 – Report 1

International Policy Response

April 14th, 2020
TANNIYA SANKHYAN | SARAYU NANDAKUMAR

FACULTY MENTOR: ASEEM PRAKASH

SCHOOL OF PUBLIC POLICY AND GOVERNANCE

TATA INSTITUTE OF SOCIAL SCIENCES
HYDERABAD
 School of Public Policy & Governance, TISS- Hyderabad Sarayu & Tanniya

About the Series:

The School of Public Policy & Governance, TISS Hyderabad, is collaborating and
supporting the initiative undertaken by its alumnus to document the response of
Union and State Governments to address the Health, Livelihood and other Welfare
concerns posed by COVID-19. This initiative documents the international policy
response

Note: As we understand, this documentation is a dynamic exercise and will require

constant upgradation. We will attempt to add the new initiatives regularly and
disseminate it widely.
The information used in this document have been taken from reports published by
respective governments, IMF, WHO and other international bodies and every effort
was taken to ensure that the data is accurate and reliable. Any inadvertent
omissions/lapses are deeply regretted. Please inform of any such omissions at
[email protected]. Immediate measures will be taken to correct the
information.

About the Authors:

Sarayu Nandakumar, alumnus of the batch 2016-18, holds an MA in Development Studies from the School of
Livelihood and Development, TISS, is currently engaged with the Aga Khan Foundation.

Tanniya Sankhyan, alumnus of the batch 2016 – 18, holds an MA in Public Policy & Governance from the School of
Public Policy &Governance, TISS, is currently engaged with the Government of Karnataka.

Faculty Mentor:
Aseem Prakash, Professor & Chairperson, School of Public Policy and Governance, Tata Institute of Social Sciences,
Hyderabad.

All views expressed in this document are personal and has no relation to any affiliated institution.
School of Public Policy & Governance, TISS- Hyderabad Sarayu & Tanniya

SCHOOL OF PUBLIC POLICY AND GOVERNANCE

TATA INSTITUTE OF SOCIAL SCIENCES
HYDERABAD
School of Public Policy & Governance, TISS- Hyderabad Sarayu & Tanniya

Table Of Contents
INTRODUCTION ___________________________________________________________________________ 2
SCHEMATIC FLOW _________________________________________________________________________ 4
BACKGROUND ____________________________________________________________________________ 5
SHORT TERM MEASURES TAKEN _____________________________________________________________ 6
EARLY RESPONSE___________________________________________________________________________ 6
SUMMARY OF EARLY MEASURES ________________________________________________________________ 7
OTHER MEASURES _________________________________________________________________________ 9
Masks _______________________________________________________________________________ 9
Testing Kits __________________________________________________________________________ 10
Technology __________________________________________________________________________ 11
Control Material for Laboratory Tests _____________________________________________________ 12
Vaccine _____________________________________________________________________________ 12
UNIQUE GLOBAL POLICY RESPONSES _________________________________________________________ 13
FISCAL & SOCIAL POLICY _____________________________________________________________________ 13
Medium & Small Enterprises – Brazil, China, Italy, Singapore ___________________________________ 13
Prevention Of Unemployment & Quicker Recovery – Germany, Brazil, Lithuania, Czech Republic, Singapore
___________________________________________________________________________________ 15
Migrant Labour – Portugal, Maldives, Lebanon _____________________________________________ 18
Healthcare – Lithuania, S.Korea, Eu, Germany, Ukraine, Portugal, Singapore ______________________ 19
Tourism_____________________________________________________________________________ 22
EUROPEAN UNION ________________________________________________________________________ 24
MONETARY MEASURES _____________________________________________________________________ 26
Denmark ____________________________________________________________________________ 26
Czech Repubic ________________________________________________________________________ 26
Kenya ______________________________________________________________________________ 26
Srilanka _____________________________________________________________________________ 27
INTERNATIONAL ORGANIZATIONS ___________________________________________________________ 28
WORLD HEALTH ORGANIZATION _______________________________________________________________ 28
UNITED NATIONS _________________________________________________________________________ 29
INTERNATIONAL MONETARY FUND ______________________________________________________________ 29
ASIAN DEVELOPMENT BANK __________________________________________________________________ 29
KFW DEVELOPMENT BANK ___________________________________________________________________ 30
SUMMARY ______________________________________________________________________________ 31
ANNEXURE I _____________________________________________________________________________ 32
COUNTRY SPECIFIC POLICY MEASURES _______________________________________________________ 33

Table of Figures
Figure 1: Flattening the curve ________________________________________________________________ 3
Figure 2: Timeline of COVID-19 and Government Responses ________________________________________ 6
Figure 3: Flattening of the Curve ______________________________________________________________ 9
Figure 4: Total test for covid-19 ______________________________________________________________ 11
Figure 5: New control material for testing sars-cov-2 _____________________________________________ 12
Figure 6: G20 Countries Fiscal Response to covid-19 ______________________________________________ 31

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Introduction
The pandemic has prompted governments across the world to act quickly as the crisis has
loomed upon with unprecedented set of problems. With no cure or vaccine as of today for
the disease, governments are tasked to respond through policy interventions to effectively
and immediately curtail the spread as well as adopting certain policy measures to provide
economic and social safeguards to mitigate a total social and economic disorder. The
immediate policy outcome to curtail the spread of the disease can be visualized graphically
through the shape of a curve. The curve represents the trajectory of positive cases (those
infected with the disease) plotted along the y axis with dates plotted on the x axis. With no
intervention, the curve is said to grow exponentially. Therefore, the first response for any
government has been to design the shape of this graph through strategic policy action. The
most popular imagination is to ‘flatten the curve’ or delay the spread of the disease by locking
down the economy and discontinuing non-essential activities and adopting other protective
measures, so that additional time is bought, easing the burden on the health care system and
the overall impact it has on the economy. Some countries of the West 1 have tried an
alternative approach to curtail the spread of the disease called ‘herd immunity’ – where so
many people in the community become immune to the disease that it stops spreading. While
these are two popular immediate approaches to deal with the spread of the disease due to
non-availability of a vaccine, the outbreak itself has led to a catastrophic impact on the
economy globally. More specific, it has impacted various sectors and segments of the
economy differently.

This report therefore considers the trajectory of confirmed cases, how it has developed from
Jan 17th to April 14thnd and specifies the measures taken by the countries that were
frontrunners in taking early action. Further, it documents the policy response on various
sectors of the economy across countries as well as records the response of some of the
prominent international organisations such as the World Health Organisation, Asian
Development Bank, United Nations and International Monetary Fund. While some countries
have managed to defend themselves better with the resulting outcomes of certain policy

1 United Kingdom, Sweden, Netherlands

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measures to be somewhat favourable in the short run, every single policy decision taken is a
considered to be as valuable, for they offer great insights and learning. The need of the hour
is to better understand learn from these experiences so as to guide us in taking evidence
based policy measures. This may be supplemented with similar studies using statistical
analysis.2

FIGURE 1: FLATTENING THE CURVE

2 A team of researchers at Blavatnik School of Policy, University of Oxford have created an online tracker which collates government’s action and
adoption of policy measures and uses statistical tools to determine if stringency of government responses and the time at which those decisions
were taken have any implications on the rate of infection.
https://www.bsg.ox.ac.uk/research/research-projects/oxford-covid-19-government-response-tracker

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Schematic Flow

Country wise - Case

Fatality Rate

Early Response
measures

Country Highlights -
Unique Policy Country Highlights- International
Policy Responses on
Measures Econimic Impact Monetary Policy Organisations

Medium and Small

WHO
Enterprises

Prevention Of
Unemployment & UN
Quicker Recovery

Migrants IMF

Healthcare ADB

Tourism KfW

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Background
The first case was reported in China on 17th November, 2019. The Chinese authorities
intimated the World Health Organisation on 31st December, 2019 when it was already a full-
fledged outbreak. It was declared a pandemic by the World Health Organisation (WHO) on
11th March, 2020. This report takes cognisance of policy action taken from the time first case
was reported in China to April 14th. The table below indicates the case fatality rate of different
countries since the time WHO declared covid-19 as a pandemic.
Postive cases Deaths Case
11th 14th 11th 14th Fatality
Country March April March April Rate
UK 434 81422 8 12107 14.87%
Italy 12462 162488 827 21067 12.97%
Netherlands 503 27419 5 2945 10.74%
Spain 2277 174060 55 18255 10.49%
Sweden 500 11335 1 1033 9.11%
Iran 9000 74877 354 4683 6.25%
Brazil 52 25684 0 1552 6.04%
Denmark 514 6511 0 299 4.59%
USA 1301 613883 38 26047 4.24%
Kenya 0 216 0 9 4.17%
China 80793 82295 3169 3342 4.06%
Bosnia and
Herzegovina 7 1083 0 40 3.69%
India 62 11555 0 384 3.32%
Lebanon 68 641 2 21 3.28%
Portugal 61 17448 0 567 3.25%
Srilanka 2 233 0 7 3.00%
Ukraine 1 3372 0 98 2.91%
Guatemala 0 180 0 5 2.78%
Lithuania 3 1091 0 29 2.66%
Germany 1966 132210 3 3495 2.64%
Czech
Republic 94 6141 0 161 2.62%
South Korea 7755 10591 60 224 2.12%
Finland 65 3161 0 64 2.02%
Taiwan 48 395 1 6 1.52%
Iceland 85 1720 0 8 0.47%
Hong Kong 130 1013 3 4 0.39%
Singapore 178 3252 0 10 0.31%
Maldives 8 21 0 0 0.00%
Source: (worldometers, 2020)

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Short Term Measures Taken

Early Response
Almost all the countries across the world have taken immediate measures to curtail the
spread of the virus through social distancing, travel bans, closure of schools, events, parks,
restaurants and other public places and the most stringent of all, a lockdown. The figure
below pictorially represents when various governments’ have taken these measures since the
first case reported in Wuhan.

FIGURE 2: TIMELINE OF COVID-19 AND G OVERNMENT R ESPONSES

Source: Brookings India, 2020

The East Asian countries – namely Taiwan, Singapore and South Korea emerged to be better
coping as a result of their early response. They acted based on the learnings and experiences
from the outbreak of SARS and MERS in early 2000s. The following pages innumerate the early
measures these specific countries took that considerably flattened the curve.

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Summary of Early Measures

Taiwan Singapore South Korea

Only 81 miles away from • First case reported on 23rd • First case reported
mainland China, Taiwan has January – 20th January 2020
been extremely successful in • Early realization of
containing the spread of the • Infrastructure – isolation severity - corona
virus in the country. As on hospitals were built after the test kits were being
April 2nd, 2020 the total SARS outbreak with negative made after 1 week
number of Covid 19 positive pressure rooms in place. of first detection.
cases in the country were 339 Country makes
with a total of 5 deaths • Took necessary precautions more than 1,
(Taiwan Centers for Disease when China started 00,000 kits a day.
Control, 2020). Its early and reporting flu- cases in • Opened 600
aggressive efforts has December. Singapore was specialized testing
ensured such a control. ready with measures by the centers that aren’t
Picking upon the signals of a time WHO declared it as a in regular hospitals
flu like illness in Wuhan pandemic. and clinics. Test
through social media in centers include
December, the CDC in Taiwan • Conducts aggressive testing. drive-ins and walk-
sent out two doctors to ins. Public
Wuhan to know more about • People who test positive are messaging
the situation and on January all kept in hospitals. Strict emphasized on
20th, the government of quarantine measures with testing and getting
Taiwan set up and activated a location checks and tested if anyone
centralized command center. punishment is harsh if showed any
• First reported case- 21st violated. Even those with symptom.
January 2020 mild cases are kept in • Visitors from
• Screening and testing at hospitals unlike US, Europe abroad had
and Australia download an app
airports from when China •
Home quarantine measures that keeps track of
reported to WHO in
are also very strict - own their symptoms and
January.
bathroom, no visitors, no movement.
• Suspended tours to China home members in too • Public buildings use
from February 2020 thermal image
• • Focused on a strong and
Banned exports of face cameras.
masked and capped them clear public awareness • Restaurants check
at $0.17 and rationed it campaign through cartoons. for temperature of
out to citizens’ upon all visitors before
• Ensured that the
presenting their Natl. they were let in.
Health Insurance Card. communication and • When the number
• messages were strong of cases started
By late February, Teipei enough to not let fear of the
distributed masks, hand growing, cell
disease drive people’s phones were

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sanitizers and forehead imagination – especially altered with SMS

thermometers to schools those going into quarantine. whenever new
and after school The focus was on cases were
institutions. annihilating any stigma discovered in a
• Thermal thermometers attached to the illness. region , where and
infected person
were already installed in •
Those who were not infected went, weather they
airports (during SARS),
were allowed to work. had a mask on or
travelers had to report
not, etc. and
health and travel history •
The Prime Minister does encouraged people
through a QR Code to the
regular press conferences to get tested if they
Government. The
with solid messaging. Plan of were around in the
Government strictly
Action is also transparent same place.
tracked these.
and discussed with all • People ordered into
• People who had not people. self-quarantine
travelled to the identified have to get an app
high-risk areas were sent • Testing – which alters the
a health declaration o Started with people only officials if ventured
border pass through SMS with travel history to out - huge fines if
for faster clearance. Wuhan/ Hubei. violated
• o Anyone who went to • Health care
Those with travel history
were quarantined at China in January. measures -
o By end of January all identified and
home and movement was
tracked through mobile public hospitals could treated patients
phones. test. Anyone coming to early, segregated
• the hospital with a mild and severe
Government does not respiratory illness, ones, and ensured
ignore those who test anyone in contact with a the fatality are kept
negative. It monitors covid 19 patient were rate low
them as well to see if new tested. • The health care
cases emerge from close o All Hospital staff even system is
contacts. with a mild cold were nationalized and
• Fines are high for tested. covers any costs
violating Quarantine o People in general related to the
measures. suffering from a cold Covid-19
could get medical • Huge levels of
certificate with up to 5 public trust, despite
days of stay at home as privacy tradeoff.
economic activity was
not on halt.
o Casual workers were
offered financial help.

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Other Measures
Masks
The Centers of Disease Control, USA, WHO and many international bodies of the west had
been recommending the usage of masks to be limited to those who may have a cold/cough/
sneezing, taking care of a suspected COVID-19 patient, especially if a person is healthy. The
justification was rooted in shortage of supply of masks for health-care workers and front-
line workers. Their stance however changed in April, to one requiring everyone to wear
masks, not necessarily surgical or N95. However, lessons from East Asian Countries that
have flattened the curve indicate that everyone wearing a mask from the early days is a
huge contributor in containing the spread.

FIGURE 3: FLATTENING OF THE CURVE SOURCE : HUANG , 2020

SOURCE : (HUANG, 2020)

Effect of mitigating interventions that would decrease the initial reproduction rate R0 by
50% when implemented at day 25. Red curve is the course of numbers of infected
individuals (”case”) without intervention. Green curve reflects the changed (”flattened”)
curve after intervention. Day 0 (March 3, 2020) is the time at which 100 cases of infections
were confirmed (d100 = 0). The model is only for illustration and was performed in the
SEIR-model simulator (http://gabgoh.github.io/COVID/index.html). The non-intervention
model was fitted to these data points: a time period of twenty days in which the number
of cases in the United States has risen from 100 (d100=0) to 35,000 (d100=20). Standard
parameters were used (population size 330 M, Tinc=5.2 days, Tinf = 3.0 days but with the

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rather high value R0=5.6 in order to achieve the observed rate of increase of case numbers
in the U.S. The curves are redrawn not to scale. Source: (Huang, 2020)

Testing Kits
Testing is an important cornerstone in terms of policy action to Covid-19 with availability
of testing kits available being an important crux. Countries with aggressive testing policy
along with extensive and testing early have been front runners in flattening the curve. In
fact, tests with robust disaggregated data in itself helps with better understanding of the
pandemic and steps that are needed to be taken. South Korea, Taiwan and Singapore were
front runners in aggressive and early testing. South Korea, at the peak of the crisis was
testing 20,000 people a day and Korean companies are now making tests for at least
135000 people a day.

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FIGURE 4: T OTAL TEST FOR COVID -19

Source: Our World In Data (Hasell, et al., 2020)

Singapore has authorized permission for using Rapid test kits, a 10-minute test with 95%
accuracy. A private company called Biolidics got a provisional authorization. It uses either
serum, plasma or whole blood samples. The rapid test kit is easy to use and can enable
more effective and efficient decentralized screening among suspected patients. For
instance, it can be deployed for the screening of suspected patients in scenarios like border
entry points or potential COVID-19 clusters.

Technology
Innovative digital have emerged across countries. Access to telemedicine has been made
easier in France and the United States. Israel has introduced robotic devices and
telemedicine use to monitor the health status of quarantined people. Korea is trialling
smartphone applications to allow those in quarantine to report the evolution of their case
as well as to monitor their quarantine compliance. Artificial intelligence initiatives to track
the spread of the virus and predict where it may appear next have been developed in
Canada.

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Control Material for Laboratory Tests

On 1st April 2020, Joint Research Center Scientists designed a new control material that
guarantees correct and harmonized functioning of laboratory tests . The material enhances
quality control detection of SARS-CoV-2, the virus causing COVID-19. This enables
verification of up to 60 million laboratory tests throughout the European Union. This
control material is fully compatible with the official WHO recommended methods applied
in the EU, Asia and the USA and can be used as a benchmark and validate numerous test
kits developed worldwide. i

FIGURE 5: NEW CONTROL MATERIAL FOR TESTING SARS -COV-2

Source: EU science hub updates

Vaccine
Laboratories in many countries are already conducting tests that, it is hoped, will eventually
lead to a vaccine. In an attempt to corral these efforts, WHO brought together 400 of the
world’s leading researchers in February, to identify research priorities.

The agency launched a “Solidarity Trial”, an international clinical trial, involving 90

countries, to help find effective treatment. The aim is to rapidly discover whether any
existing drugs can slow the progression of the disease, or improve survival.

To better understand the virus, WHO has developed research protocols that are being used
in more than 40 countries, in a coordinated way, and some 130 scientists, funders and
manufacturers from around the world have signed a statement committing to work with
WHO to speed the development of a vaccine against COVID-19.ii

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Unique Global Policy Responses

The following pages documents the fiscal, social and monetary policy response of various
countries to address the problems emerging due to spread of Covid-19. These countries are
chosen due to their clarity in their respective policy interventions as outlined in the
documents available in the public domain. This section is divided into two three segments,
o Fiscal & Social Policy Measures
The broad intervention areas chosen are Medium & Small Enterprises, Prevention of
Unemployment and quicker recovery, Migrant labour, Tourism and Healthcare.
o European Union’s additional measures for supporting member countries
o Monetary Policy Measures

To get a detailed overview of fiscal, social and monetary policy measures undertaken by the
countries, refer Annexure I.

Fiscal & Social Policy

Policy Policy
Country(s) Policy Measure
Framework Instrument

MEDIUM & SMALL ENTERPRISES – Brazil, China, Italy, Singapore

Brazil Fiscal Loans The Brazilian federal government has

Policy postponed the collection of Simples
National tax for three months, which will
benefit 4.9 crore companies. The Income
Generation Program, with resources from
the Workers' Support Fund, will give R$5
billion to the public banks to grant loans to
micro and small companies.
The Federal government will also contribute
R$ 34 billion for small and medium-sized
Brazilian companies to retain their

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employees. Companies will not be able to

dismiss their employees without just cause
for a period of two months after obtaining
the funds. Companies will have 36 months
to repay (after the six-month grace period).iii
China Fiscal Financial Local government-controlled financing
Policy Guarantee guarantee and re-guarantee entities will
halve small and micro businesses' costs for
financing guarantee and re-guarantee
services in 2020 and further enlarge the
scale of services to small and micro firms as
well as agricultural and rural entities.iv
Italy Fiscal Loans and The Ministry of Economy and Finance, the
Policy Guarantee Fund Bank of Italy, the Banking Association
Italiana and Medio-Credito Centrale (MCC)
have set up a task force to offer loans for
micro businesses, SMEs, professionals and
sole proprietorships. The guarantee fund
has been strengthened and expanded to
make the process faster and easier.v
Singapore Fiscal Payment Working capital loans will be further
Policy Deferment enhanced from 1 April 2020 to 31 March
2021. Small and medium sized enterprises
may defer payments on secured term loans
up to 31 December 2020. Banks and finance
companies may apply for low cost funding
which can lower the interest rates to SME
borrowers.

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PREVENTION OF UNEMPLOYMENT & QUICKER RECOVERY – Germany, Brazil, Lithuania,

Czech Republic, Singapore

Germany Fiscal Credit Subsidies State credit and subsidy program of over
Policy 750 billion euros for the self-employed,
small employers and large corporations.
Special programs that help employees pay
rent and maintain benefits have been put
into place. This policy is referred to as
Kurzarbeit or the short time system, which
proved highly successful during the Great
Recession of 2008-2012. It is being used to
prevent a wave of unemployment. The
system allows companies to pause the
employment of workers, who then get up to
67 percent of their wages paid by the state
unemployment agency.
Once the crisis is over, these same workers
are entitled to return to their old jobs at
their former salaries. Companies can
ultimately get back to work quickly because
they can rely on an experienced workforce
and do not need to look for and train new
staff.vi
Brazil Fiscal Credit Line The Federal Government announced
Policy measures to help businesses, which
includes an emergency credit line for
companies with revenues between R $360
thousand and R $10 million. The measure
will finance two months of payroll and at R
$ 20 billion (₹ 29.71 crores) per month,

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totalling R $40 billion at the end of the

period.
The government has enacted provisional
measure no. 927 for employers to preserve
jobs during the crisis. Measures such as
remote working, anticipation of individual
vacations, granting of collective vacations,
use and anticipation of holidays,
compensatory hours, suspension of
administrative requirements in
occupational safety and health and the
deferral of payment of the Guarantee Fund
for Seniority may be adopted by
employers.vii
Lithuania Fiscal Income Support Lithuania Government extends support for
Policy Program downtime and partial downtime to be
made available: employee allowance no
less than a minimum monthly wage
(MMW), State funds will account for 60%
but no more than one MMW. It is also
intended to extend the provisions of the
Artists Social Security Programme and to
allocate additional funds for its
implementation. It is also planned to
allocate funds for the self-employed who
have paid social security contributions: to
pay EUR 257 a month for up to 3 months
when they are unable to carry out their
activities due to quarantine, and to provide
a state guarantee to extend the deferred
period from 3 to 6 months for mortgage

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payments (excluding interest) for those

who have lost their jobs. viii
Czech Fiscal Income Support Czech government will pay out (through the
Republic Policy Program respective employers) 60% of the average
contribution base to employees affected by
the quarantine. The government will
support employers who continue, despite
their businesses being shut down, to pay out
100% of the salaries to affected employees
by covering 80% of salary costs.
For supply chain interruptions that are
crucial for an employer and if the employer
still pays at least 80 % compensation to their
employees, the state will contribute 50% of
the compensation. If a business is hit by
significantly lowered demand on services
and the employer pays at least 60%
compensation, the state will contribute by
50% of the compensation.ix
Singapore Fiscal Social Payouts, The authorities have announced 3 packages
Policy Income Support, of measures on February 18, March 26, and
Subsidies April 6, amounting to a total stimulus of
S$59.9 billion (12.2 percent of GDP). Funds
to contain the outbreak are about S$800
million (mainly to the Ministry of Health).
The Care and Support Package provides
support to households (S$ 5.7 billion),
including a cash payout to all Singaporeans,
and additional payments for lower-income
individuals and the unemployed. The
Stabilization and Support Package provides

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support to businesses (about S$31.5 billion),

including wage subsidies, an enhancement
of financing schemes, and additional
support for industries directly affected and
the self-employed. It also sets aside loan
capital of S$20 billion and introduces other
economic resilience measures (S$1.9
billion).

MIGRANT LABOUR – Portugal, Maldives, Lebanon

Portugal Social Citizenship The Portuguese Council of Ministers has

Policy decided to temporarily grant all migrants
and asylum seekers currently in the country
full citizenship rights. The move has been
taken in order to permit these categories to
have full access to the country's healthcare
as the outbreak of the novel Coronavirus
escalates in the country, and therefore
reduce the risks for public health. According
to the Portuguese Council of Ministers, the
move will unequivocally guarantee the
rights of all the foreign citizens that have
pending applications submitted at the
Portuguese immigration office until June 30,
as these persons are “in a situation of
regular permanence in National Territory.”x
Maldives Social Welfare Access There are about 100,000 migrant workers in
Policy the Maldives, mostly from Bangladesh,
making up roughly 25 percent of the islands’
total population.

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The government has established a

dedicated COVID-19 clinic for migrant
workers on Hulhumale island, near the
capital, Malé, which does not require them
to show work permits or other
documentation.xi
Lebanon Social Welfare Access The cabinet of Ministers would
Policy distribute 400,000 Lebanese pounds (about
US$150 at current market rates) to the
poorest families and 75 billion Lebanese
pounds (around $28 million) for nutrition
and sanitary assistance. The Lebanese Food
Bank, for example, funded entirely by
donations, sends boxes containing basic
food items and hygiene kits that can last a
family of four for up to one month to 85
nongovernmental organizations. These
organizations distribute the boxes to
vulnerable families that they have identified
across the country. Other initiatives are
providing medicine, rent money, blankets,
and clothing to families who need them. The
government has asked families seeking
coronavirus-related relief to apply for aid
via municipalities.xii

HEALTHCARE – Lithuania, S.Korea, EU, Germany, Ukraine, Portugal, Singapore

Lithuania Fiscal Social Procurement The Lithuania Government has allocated

Measure amounts from the collective EUR 500
Million to ensure necessary resources for
the efficient operation of health and public

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security systems with focus on purchasing

personal protective equipment, reagents,
medical and other equipment, staff bonus
payments and additional social guarantees
for health care workers and officials. In
addition, funds will be made available for
additional funding for public authorities
involved in emergency management,
including employee bonus payments. It
also provides solutions for quicker and
simpler public procurement.
South Fiscal Social Procurement South Korea unveiled a KRW11.7 trillion
Korea Measure (US$9.8 billion) supplementary budget, part
of which is targeting greater disease control
efforts, health services and quarantine
needs.
European Fiscal Social Procurement To directly support healthcare systems in EU
Union Measure countries, the European Commission
proposed to activate the EU’s Emergency
Support Instrument – a measure that that
Council quickly approved on 14 April. The
€2.7 billion Instrument will support the
distribution of protective gear, the
movement of patients to hospitals with free
capacity, and to the development of
medication and testing methods. The
instrument will be used together with other
EU tools, for example the rescEU medical
stockpile, which is receiving €300 million in
addition to the initially proposed allocation
of €80 million, to support the distribution of

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medical equipment across the EU. It will also

be possible for individuals, foundations and
Member States to make donations and
crowd fund.
Germany Fiscal Social Procurement The government has promised financial
Measure Surveillance bonuses to hospitals that are able to
increase and maintain intensive care beds.
Furthermore, hospitals with capacity
constraints need to know to which hospitals
they can transfer patients. To this aim the
Robert Koch Institute (RKI), the German
Hospital Association (DKG) and the German
Association of Intensive and Emergency
Care (DIVI) have set up a website, where
each hospital is asked to update dally their
available capacity for intensive care with
respiratory support. On a regional level this
platform is expected to assist doctors in
quickly identifying alternative places for
treatment. In addition, the costs of the
COVID-19tests are covered by the Statutory
Health Insurance (SHI) when recommended
by a doctor. The SHI pay EUR59 per test as
agreed between SHI funds and provider
representative in the context of the self-
governing structures. Patients who are not
deemed in need for testing may still
purchase tests privately at a higher price.
Ukraine Fiscal Social Income Support Parliament has also approved a top-up of
Measure Tax Rebate 300 percent of the salary for medical
personnel working with COVID-19 patients.

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To support households, parliament has

adopted legislation that allows households
to deduct the expense of COVID-19
medicine from the calculation of personal
income tax. Medicines, medical devices and
other equipment used to prevent or combat
COVID-19 have been exempt from import
duties and VAT. The government has also
announced the creation of a temporary
stand-alone budgetary program under the
Finance Ministry to fight the pandemic. This
program allows for a greater flexibility in the
reallocation of funds to quickly
accommodate changing priorities.xiii

TOURISM

Portugal Fiscal and Credit Line The Government has placed particular
Social Social Security emphasis on the Travel & Tourism sector by
Policy establishing a dedicated €60 million credit
line for micro-businesses in the sector and
by working closely with Turismo de Portugal
to bolster national capacity to respond to
the challenges resulting from COVID-19.
Specifically for micro-enterprises in the
tourism sector, extraordinary support for
the maintenance of employment contracts
in a company in the amount of 2/3 of the
remuneration, and ensuring 70% of Social
Security, the remainder being borne by the
employer, offering of training scholarships
in the Institute for Employment and

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Vocational Training in Portugal (IEFP) and

extending the deadlines for payment of
taxes and other declarative obligations.xiv
Singapore Fiscal Social Income Support Qualifying licensed hotels, qualifying
Policy Tax Rebate licensed travel agents, qualifying gated
tourist attractions, cruise lines and cruise
terminal operators, and purpose-built MICE
venue operators will receive enhanced
support under the Jobs Support Scheme to
cover 75% of gross monthly wages, per
Singapore Citizen/Permanent Resident
employee, up to a monthly wage cap of
$4,600. Qualifying commercial properties,
including hotels, serviced apartments,
tourist attractions, prescribed MICE venues,
and international cruise and regional ferry
terminals, will enjoy a property tax rebate of
100%.

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EUROPEAN UNION
ADDITIONAL POLICY MEASURES TO SUPPORT MEMBER COUNTRIES

• Significant public resources are directed to strengthen the healthcare sector and civil
protection mechanisms and to support affected workers and economic sectors. To date,
the aggregate amount of Member States’ discretionary fiscal measures amounts to 3% of
EU GDP, a threefold increase since 16 March, on top of the significant impact of automatic
stabilisers.
• Member States have so far committed to provide liquidity support for sectors facing
disruptions and companies facing liquidity shortages, consisting of public guarantee
schemes and deferred tax payments, which are estimated at 16% of EU GDP on 2nd April,
up from 10% on 16 March.
• Specific temporary state-aid framework to expedite public support to companies, while
ensuring the necessary level playing field in the Single Market as well as the recent
extension of the framework to cover support for research, testing and production relevant
in the fight against the COVID 19 pandemic as of 1st April.
• The proposal for a Coronavirus Response Investment Initiative was approved by the
European Parliament and the Council and is in force as of the 1st of April. This will allow
the use of EUR 37 billion under cohesion policy to address the consequences of the COVID-
19 crisis. In addition, the scope of the Solidarity Fund was broadened to include major
public health crises. Starting from the 1st of April, this allows the hardest hit Member
States to get access to financial support of up to EUR 800 million in 2020.
• Proposals regarding the further temporary flexibility in the use of EU funds, such as
allowing transfers between funds, regions and policy objectives, abandoning national co-
financing requirements and supporting vulnerable members of society. This will help to
mobilise effectively the EU budget to face the repercussions of the COVID-19 pandemic.
• Dedicated COVID-19 instrument to support the financing of emergency aid, through the
provision of grants, is necessary, to first and foremost reinforce our healthcare systems.
Proposed on 2 April to re-activate the Emergency Support Instrument in the context of
the COVID-19 outbreak.

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• EIB Group to create a pan-European guarantee fund of EUR 25 billion, which could support
EUR 200 billion of financing for companies with a focus on SMEs, throughout the EU,
including through national promotional banks.
• Commission proposal of 2 April to set-up a temporary instrument supporting Member
States to protect employment in the specific emergency circumstances of the COVID-19
crisis. It would provide financial assistance during the time of the crisis, in the form of
loans granted on favourable terms from the EU to Member States, of up to EUR 100 billion
in total, building on the EU budget as much as possible, while ensuring sufficient capacity
for Balance of Payments support, and on guarantees provided by Member States to the
EU budget. The instrument could primarily support the efforts to protect workers and
jobs, while respecting the national competences in the field of social security systems, and
some health-related measures.
• Recovery Fund to prepare and support the recovery, providing funding through the EU
budget to programmes designed to kick-start the economy in line with European priorities
and ensuring EU solidarity with the most affected member states.xvxvi

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Monetary Measures

DENMARK

The Denmark’s National Bank (DN) activated the standing swap line (another term for a
temporary reciprocal currency arrangement between central banks. That means they agree
to keep a supply of their country's currency available to trade to another central bank at the
going exchange rate) doubled its size to EUR 24 billion. It will remain in place as long as
needed. The DN announced the launch of an ‘extraordinary lending facility’ which will make
full-allotment, 1-week, collateralized loans available to banks at -0.5 percent interest rate. xvii

Advantages: longer-term refinancing with unchanged interest rates which provides

immediate liquidity support, stability of domestic and foreign financial markets,
recipient central banks gain foreign currency in addition to existing foreign reserves,
and reduction in pressure on the major currencies to appreciate.

CZECH REPUBIC

The Czech National Bank (CNB) revisited its countercyclical capital buffer rate (intended to
protect the banking sector against losses that could be caused by cyclical systemic risks which
requires banks to add capital at times when credit is growing rapidly so that the buffer can be
reduced when the financial cycle turns) for exposures located in the Czech Republic at 1.75
percent. The CNB is considering to, if certain conditions are met, allow banks to delay loan
payments by up to 5 months without requiring (i) the immediate reclassification of loans as
non-performing and (ii) banks to update the respective clients' credit rating in the credit
registry.xviii

Advantages: to build up adequate capital and liquidity buffers to absorb losses,

continue lending, contain financial downswing, relief on loan payments.

KENYA

The Kenyan Central Bank (1) lowered its policy rate from 8.25 percent to 7.25 percent; (2)
lowered banks’ cash reserve ratio from 5.25 percent to 4.25 percent; (3) increased the

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maximum tenor of repurchase agreements from 28 to 91 days; and (4) announced flexibility
to banks regarding loan reclassification and provisioning for loans that were performing on
March 2, 2020, but were restructured due to the pandemic. The central bank has also
encouraged banks to extend flexibility to borrowers’ loan terms based on pandemic-related
circumstances and encouraged the waiving or reducing of charges on mobile money
transactions to disincentivize the use of cash. xixxx

Advantages: boosting liquidity and support commercial banks with cash that they can
lend to various borrowers, incentives to banks to avoid increasing lending rate and,
cushion Kenyans from adverse debt payments (28% of lending comprises of personal
loans).

SRILANKA

The Central Bank of Sri Lanka (CBSL) lowered the required reserve ratio on domestic currency
deposits of commercial banks by one percentage point to ease liquidity conditions. The
President has also announced a wide-ranging debt repayment moratorium, which includes a
six month moratorium on bank loans for the tourism, garment, plantation and IT sectors,
related logistics providers, and small & medium size industries, with reduced rate working
capital loans for these sectors. There will also be a six month moratorium on leasing loans for
three-wheelers, and a three-month moratorium on small-value personal banking and leasing
loans. The interest rate on credit cards will be capped, for transactions up to a certain amount,
with a reduction in the minimum monthly repayment. In addition, the President has
announced that state-owned financial institutions will invest in treasury bonds and bills to
stabilize the money market interest rate at 7 percent.xxi

Advantages: increased liquidity, relief on personal loans payment for specific sectors
and debt moratoriums to the self-employed.

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International Organizations

World Health Organization

WHO, for its work to track the spread of the virus, assess gaps and needs, equips frontline
health workers with personal protective equipment, ensures lab and testing tools are
available in countries around the world, and keep communities and frontline responders
informed with the latest technical guidance.xxii
• Strictly recommended that countries intensify surveillance for "unusual outbreaks of
influenza-like illness and severe pneumonia and monitor carefully the evolution of
COVID-19 outbreaks, reinforcing epidemiological surveillance."
• On 2nd March, WHO experts lands in Iran to support the outbreak response with
technical assistance, bringing medical supplies and protective equipment for over
15,000 health care workers and enough laboratory kits to test nearly 100,000 people.
• The health agency’s six regional offices, and 150 country offices, work closely with
governments around the world to prepare their health systems. With partners, WHO
set up the COVID-19 Solidarity Response Fund, to ensure patients get the care they
need, and frontline workers get essential supplies and information; and to accelerate
research and development of a vaccine and treatments for all who need them.
• WHO has shipped more than two million items of personal protective equipment to
133 countries, and is preparing to ship another two million items in the coming
weeks. More than a million diagnostic tests have been dispatched to 126 countries,
in all regions, and more are being sourced. WHO is working with the International
Chamber of Commerce, the World Economic Forum, and others in the private sector,
to ramp up the production and distribution of essential medical supplies. On 8 April,
WHO launched a “UN COVID-19 Supply Chain Task Force”, which aims to
dramatically increase the supply of essential protective equipment where it is
needed.xxiii
• WHO is aiming to train millions of health workers, via its OpenWHO platform. more
than 1.2 million people have enrolled in 43 languages. Countries are also being
supported by experts, deployed around the world by the WHO’s Global Outbreak Alert
and Response Network (GOARN)xxiv

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United Nations
• Released $15 million from its Central Emergency Response Fund to WHO and UNICEF
to support vulnerable countries in areas including monitoring the spread of COVID-19,
investigating cases, and operating national laboratories.
• Committed $37 million from the Emergency Reserve Fund for Contagious Infectious
Diseases. xxv

International Monetary Fund

• Double access to emergency facilities and a $100 billion in financing available.
• Continuous review of their tool kit to update use of credit lines and additional liquidity
support to establish short-term liquidity line and other options to meet countries
financing needs.
• Revamped the Catastrophe Containment and Relief Trust to provide immediate debt
relief to low-income countries, catering to urgent health needs. IMF is also providing
emergency assistance to member countries approved by the IMF’s Executive Board
under the Rapid Credit Facility (RCF), Rapid Financing Instrument (RFI), and
augmentation of existing financing arrangements, as well as debt relief grants
financed by the Catastrophe Containment and Relief Trust (CCRT).xxvi

Asian Development Bank

• Approved a $20 billion funding and other measures to streamline its operations for
quicker and more flexible delivery of assistance. This involves helping member
countries counter severe macroeconomic and health impacts and included $2.5 billion
in concessional and grant resources.
• Package will establish COVID-19 Pandemic Response Option under ADB’s
countercyclical support facility, with particular focus on the poor and vulnerable and
grant resources will continue to be deployed for providing medical and personal
protective equipment and supplies for expanded procurement sources.
• Additional $2 billion will be made available to private sector, including loan and
guarantee to the financial institutions. Enhanced support to liquidity starved small and
medium size enterprises, especially those run by women.
• This support is closely collaborated with IMF, WB, WHO, UNICEF and other UN
agencies.xxvii

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KfW DEVELOPMENT BANK

• Implemented a fast-track aid programme for the Federal Ministry for Economic
Cooperation and Development (BMZ) to help countries fight the pandemic and
continue supporting the health sector. Includes helping the East and West African
countries prepare their laboratory capacity to handle coronavirus. In addition to
increased support for the financial sector, small and medium-sized enterprises and
socio-economic stabilisation programmes.
• Due to rising economic and financial demand throughout Germany and Europe, as one
of the relief measures of KfW’s relief programs, all the existing programs will be
expanded. Loans shall be provided in line with categorizations of size, business
experience and financial health such as corporate loans, loans for growth, founder
loan, etc for big, small and midsize companies and, distressed companies. xxviii

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Summary
As of 13th April, the confirmed cases of COVID-19 have exceeded 1.9 million. With increased
restrictions in economic activity, movements and finding alternatives for keeping the markets
stable amidst the economic shock globally, excessive economic support has been seen
worldwide among unions, countries, agencies, businesses and individuals. One of the largest
components of fiscal support is in the form of financing and crisis-related discretionary
measures towards provisioning healthcare, increasing liquidity and protection against
income loss. The following graph illustrates G20 countries fiscal response to COVID-19.

Fiscal Respone to Covid-19

G20 Countries
$2,400 25.00%

$2,200

$2,000
20.00%
$1,800

$1,600

15.00%
$1,400

$1,200

$1,000
10.00%

$800

$600
5.00%
$400

$200

$0 0.00%

Government Spending (USD Billion) Credit Enhancement(USD Billion)

Tax Reilef(USD Billion) Total(USD Billion)
Unspecified Total Fiscal Response as % of GDP

FIGURE 6: G20 COUNTRIES FISCAL R ESPONSE TO COVID -19

Source: (Center for Statigic and Intenational Studies, 2020)

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Takeaways from the Globe UNEMPLOYMENT

Credit and subsidy programme for the unemployed;
Part payment of wages and social security contribution by the State for the next 2-3
months;
Direct cash transfer and additional payments for lower-income individuals and the
unemployed,
Unemployment benefits due to job loss.

MARKET STABILITY MSME

Longer-term refinancing with unchanged interest rates to Small businesses and MSMEs - enhancing cash flow,
provide immediate liquidity support/buffer/ boost; Rolling out of loan guarantee schemes – Government to
Purchasing major foreign currency avoiding drastic guarantee all or part of the value of bank loans;
MEASURES
appreciation; Loans at subsidized rates or interest free loans;
Continue lending and relief on loan re-payment;
ADOPTED Deferral of tax payments;
Invest in treasury bonds & bills to stabilize the market Relaxed norms of credit line to incentivize, MSMEs
interest. GLOBALLY TO willing to retain employees.
Incentive to tourism agencies to retain the staff;
Part payment of wages and social security programmes; FIGHT COVID-19
Qualifying commercial properties, including hotels, service Full Portability of welfare rights;
apartments, tourist attractions, prescribed MICE venue etc. Dedicated living and food arrangements for all;
given property tax rebate of 100%. Direct Cash Transfer.

TOURISM MIGRANT LABOUR

Temporary stand-alone budgetary program under the Finance Ministry;

Allocation for disease control efforts, health services (including procurement of PPEs) and
quarantine needs;
Financial bonuses to hospitals that are able to increase and maintain intensive care beds;
Salary incentive to health care workers engaged with Covid-19;
Medicines, medical devices and other equipment exempted from import duties and VAT;
Invest in R&D for Covid-19 research on vaccines and rapid testing kits;
International cooperation and minimizing import duties on covid-19 related essentials.

HEALTHCARE Page | 32
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Annexure I

Country Specific Policy Measures

S. No Country Fiscal Measures Monetary and Macro-Financial
1. Bosnia & The entity governments have allocated around KM 50 million Banking Agencies have announced a six-month loan repayment
Herzegovina (0.15 percent of GDP) for dealing with COVID-19, including moratorium for restructuring credit arrangements for
purchasing medical equipment and supplies. FBIH will individuals and legal entities which are found to have
transfer KM 30 million (0.1 percent of GDP) to hospitals. RS aggravated circumstances for loans repayments due to COVID-
announced the health fund will cover health care costs for all 19. Banking Agencies have instructed banks to track clients and
patients and has postponed payments for business tax from exposure portfolios affected by COVID-19. Banks are also
end-March to end-June, while speeding up tax and SSC instructed to consider additional customer relief, including
refunds. FBIH announced that total amount about KM 1 reviewing current fees for services and avoiding charging fees
billion (3% of GDP) will be secured to support the economy, to handle exposure modifications.
through: (1) setting up a special fund to stabilize the
economy, mainly aimed at supporting exporting companies;
(2) establishing a guarantee fund which will be serve to
maintain and improve the liquidity of companies, and (3)
tasking the Development Bank to establish a credit line for
improving the liquidity of companies.
2 Brazil To mitigate the impact of COVID-19, the authorities The central bank lowered the policy rate (SELIC) by 50bps a
announced a package of fiscal measures adding up to 3½ historical low of 3.75 percent. Measures to increase liquidity in
percent of GDP—mostly reallocations within the 2020 the financial system (reduction of reserve requirements and
budget. With congress declaring a state of “public calamity” capital conservation buffers, and a temporary relaxation of
on March 20, the government’s obligation to comply with the provisioning rules, among others) have been implemented. The
primary balance target in 2020 has been lifted. The reserve requirement has been reduced from 25 to 17, on top
government has also invoked the escape clause of the of a reduction of 6 bps in early March. The central bank also
constitutional expenditure ceiling to accommodate opened a facility to provide loans to financial institutions
exceptional health spending needs. The fiscal measures backed by private corporate bonds as collateral. In addition,
include temporary income support to vulnerable households the Fed has arranged to provide up to US$60 billion to the
(bringing forward the 13th pension payment to retirees, central bank through a swap facility that will remain in place for

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expanding the Bolsa Familia program with the inclusion of the next six months. The five largest banks in the country
over 1 million more beneficiaries, cash transfers to informal agreed to consider requests by individuals and SMEs for a 60-
and unemployed workers, and advance payments of salary day extension of their maturing debt liabilities.
bonuses to low income workers), temporary tax breaks and
credit lines for firms with the aim of protecting employment, Exchange Rate & Balance of Payments
lower taxes and import levies on essential medical supplies, The exchange rate has depreciated by close to 15 percent since
and new transfers from the federal to state governments to mid-February and by 21 percent since end-2019. The central
support higher health spending and as cushion against the bank has intervened various times in the foreign exchange
expected fall in revenues. A plan assist states and market over the last three weeks (both with spot and derivative
municipalities with a temporary stay of debt payments, debt contracts sales), by a total of nearly 22 USD billion (6 percent of
renegotiation, and support for credit operations through gross reserves). The central bank is resuming repo operations
government guarantees was also announced. Public banks of Brazilian sovereign bonds denominated in US dollars, which
are expanding credit lines for businesses and households, could potentially release US$10 billion into the money market.
with a focus on supporting working capital (credit lines add
up to over 2½ percent of GDP). The National Treasury
responded to pressures in the interest rate futures market by
announcing a program for the simultaneous auctions (buying
and selling) of government securities.
3 Czech Republic The government announced a fiscal package of CZK 100bn The Czech National Bank (CNB) lowered the policy rate by 50
(€3.7bn, 2 percent of GDP). While details are being bps to 1.75 percent on March 16 and increased the frequency
determined, the measures will likely include income support of repo operations from one to three times a week. It has
of 60 percent of gross wages of employees sent into also revisited its earlier decision adopted in May 2019 to
quarantine and up to 80 percent of gross wages of employees increase the countercyclical capital buffer rate for exposures
of businesses, that had to close because of containment located in the Czech Republic to 2% with effect from 1 July
requirements. The government further granted a credit line 2020, leaving it at 1.75 percent. The CNB is considering to, if
for businesses through the state development bank (CMZRB) certain conditions are met, allow banks to delay loan
of CZK 10bn and further pledged CZK 900bn (EUR 33.3bn, 16 repayments by up to 5 months without requiring (i) the
percent of GDP) in guarantees. Advance payments on immediate reclassification of loans as non-performing and (ii)
personal and corporate income tax are waived for Q2 2020, banks to update the respective clients' credit rating in the
as are penalties for failing to pay property tax and file tax credit registry.
returns on time.
4 Denmark The authorities responded to the ongoing crisis by providing The Denmark’s National Bank (DN) increased the policy rate by
discretionary fiscal support to the tune of 2.5 percent of GDP 15bps to -0.6 percent. The standing swap line with ECB was

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(about DKK 60 billion). The increased spending will mainly activated and its size was doubled to EUR 24 billion. It will
finance additional health care needs and extraordinary remain in place as long as needed. In addition, the DN reached
budgetary measures to support workers and businesses. an agreement with the Federal Reserve to establish a USD 30
Another 2.5 percent of GDP in countercyclical support is billion swap line that will stand for at least 6 months. The DN
expected to come through Denmark’s strong automatic announced the launch of an ‘extraordinary lending facility’
stabilizers—including from weaker tax receipts and higher which will make full-allotment, 1-week, collateralized loans
social benefits. Temporary liquidity measures, available to banks at -0.5 percent interest rate on March 20.
including postponement of tax payments and government The DN on March 19, 2020 expanded this facility to include 3-
guarantees, will further support activity in the first half of month variable rate loans which will be available March 27,
year. 2020. The DN also increased the interest rate on the previously
announced 1-week loans to -0.35 percent. The Danish
authorities decided on March 12, 2020 to pre-
emptively release the countercyclical capital buffer and cancel
the planned increases meant to take effect later. The Financial
Stability Authority also announced a case by case relaxation of
regulation on the LCR requirement.
5 Finland Key discretionary tax and spending measures (about 0.7 The ECB decided to provide monetary policy support through
percent of GDP) include additional spending for (i): healthcare (i) additional asset purchases of €120 billion until end-2020
and testing, protection and medical equipment, public safety under the existing program (APP), and (ii) providing temporarily
and border controls, and research on the coronavirus additional auctions of the full-allotment, fixed rate temporary
epidemic, in particular to develop methods for rapid liquidity facility at the deposit facility rate and more favourable
diagnostics and vaccines and a knowledge base for timely terms on existing targeted longer-term refinancing operations
decision-making on coronavirus measures, (especially on the (TLTRO-III) starting between June 2020 and June 2021. Further
exit strategy) (€200 million); (ii) lower pension contributions measures included an additional €750 billion asset purchase
through the remainder of 2020 (€900 million); (iii) grants to program of private and public sector securities (Pandemic
SMEs through Business Finland and the Employment Centres Emergency Purchase Program, PEPP) until end-2020, an
(€200 million); and (iv) other possible emergencies (€200 expanded range of eligible assets under the corporate sector
million). In addition to discretionary measures, automatic purchase program (CSPP), and relaxation of collateral
stabilizers are expected to increase the fiscal deficit standards for Eurosystem refinancing operations (MROs,
significantly, including through an expansion of the coverage LTROs, TLTROs).
of existing unemployment benefits. Deferral of tax and The ECB Banking Supervision allowed significant institutions to
pension payments for 3 months are expected to provide operate temporarily below the Pillar 2 Guidance, the capital
additional short-run relief of €3-4.5 billion. Finland is also conservation buffer, and the liquidity coverage ratio (LCR). In

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contributing €5 million to international non-profit companiesaddition, new rules on the composition of capital to meet Pillar
working on the development of a COVID-19 vaccine. 2 Requirement (P2R) were front-loaded to release additional
capital. The ECB considers that the appropriate release of the
countercyclical buffer by the national macroprudential
authorities will enhance its capital relief measures. The ECB
Banking Supervision further decided to exercise – on a
temporary basis – flexibility in the classification requirements
and expectations on loss provisioning for non-performing loans
(NPLs) that are covered by public guarantees and COVID-19
related public moratoria; and recommended that banks avoid
pro-cyclical assumptions for the determination of loss
provisions. Furthermore, the ECB recommends that banks opt
for the IFRS9 transitional rules. Key measures within Finland
include: (i) Bank of Finland to support liquidity through
investing in short-term Finnish corporate commercial paper (€1
billion); (ii) 1 ppt reduction in the structural buffer
requirements of all credit institutions by removing the systemic
risk buffer and adjusting institution-specific requirements
(increases Finnish banks’ international lending capacity by an
estimated €52 billion – that, plus other countries’ measures,
increase lending capacity to Finnish households and firms by an
estimated €30 billion); (iii) Finland’s Export Credit Agency is
expanding its lending and guarantee capacity to SMEs by €10
billion (and the government will increase its coverage of the
agency’s credit and guarantee losses from 50 to 80 percent);
(iv) the State Pension Fund will also invest in commercial paper
(€1 billion); and (v) easier re-borrowing of pension
contributions allowed.
6 Guatemala For COVID-19 mitigation, the government is drawing on On March 19th, Banco de Guatemala lowered its policy rate by
emergency budgetary reserves (about US$60 million) and 50 basis points to 2.25 percent and announced that it stands
seeking Congress approval of the World Bank Disaster Risk ready to secure liquidity provision facilities, including by acting
Management DPL (US$200 million, 0.3% of GDP). A facility for as lender of last resort. To support the financial sector, the
coronavirus patients (financed through a US$1 million grant Monetary Board has temporarily eased (180-day period) credit

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from the Central American Bank of Economic Integration) will risk management regulations to enable loan restructuring, loan
add 3,000 beds to the existing capacity (350 beds). A National payments moratorium, and the use of generic provisions.
Emergency and Economic Recovery Plan and a
supplementary budget for a fiscal impulse of 1.2% of GDP are
being discussed in Congress. Key measures announced to
support the economy include streamlined tax credit refunds
to exporters (freeing up to 0.2 percent of GDP), a one- quarter
deferral of selective tax payments and social security
contributions, a guarantee fund for SMEs, and expanded
social housing.
7 Iceland A package of fiscal measures of ISK 230 billion krona (7.8 The Central Bank of Iceland (CBI) has provided monetary
percent of GDP) has been submitted to parliament to ease the support and has taken measures to preserve financial stability.
strain on households and firms and, looking forward, to help Since the outbreak, the Monetary Policy Committee (MPC) has
the economy recover. Key measures to support households cut policy rates by 100 basis points to 1.75 percent and reduced
and firms include tax cuts, tax deferrals, increased deposit institutions’ average reserve requirements point to 1
unemployment benefits, one-off child allowances, support to from 2 percent to ease their liquidity positions by about 1
companies whose employees have been quarantined, and percent of GDP. To further enhance banks’ liquidity, the public
state-guaranteed bridge loans to companies. Key measures to Housing Financing Fund will transfer its deposits from the CBI
restart the economy (1.1 percent of GDP) include public to commercial banks (about ISK30 billion, or 1 percent of GDP).
investment, tax incentives for real estate improvement, The CBI Financial Stability Committee reduced the
temporary tax relief for the tourism sector, and marketing countercyclical capital buffer from 2 percent to 0 percent,
efforts to encourage domestic tourism. providing scope for banks to increase lending by ISK 350 billion
(12 percent of GDP).
8 Iran Key measures include (i.) the disbursement of cash payments The Central Bank of Iran has (i.) announced the allocation of
(USD 14-40) to 1.5 million poor households from March to funds (0.06 percent of GDP) to import medicine;
June 2020; (ii.) extra funding for the National Committee on (ii.) agreed with commercial banks that they postpone by three
COVID-19, Tehran and other provinces (0.06 percent of GDP); months the repayment of loans due in February 2020; (iii.)
and (iii.) refurbishing of schools in order to limit the spread of offered temporary penalty waivers for customers with non-
the virus. The government has also announced low interest performing loans; and (iv.) expanded contactless payments
rate loans and funds to cover employers’ insurance for and increased the limits for bank transactions in order to
affected businesses, lending facilities for 4 million laid-off reduce the circulation of banknotes and the exchange of debit
employees in firms disrupted by the virus and a three-month cards.

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extension of the deadlines for tax payments. Sukuk bonds (0.5

percent of GDP) will provide part of the financing.
9 Kenya The Central Bank of Iran has (i.) announced the allocation of On March 24, the central bank (1) lowered its policy rate by 100
funds (0.06 percent of GDP) to import medicine; bps to 7.25 percent; (2) lowered banks’ cash reserve ratio by
(ii.) agreed with commercial banks that they postpone by 100 bps to 4.25 percent; (3) increased the maximum tenor of
three months the repayment of loans due in February 2020; repurchase agreements from 28 to 91 days; and (4) announced
(iii.) offered temporary penalty waivers for customers with flexibility to banks regarding loan classification and
non-performing loans; and (iv.) expanded contactless provisioning for loans that were performing on March 2, 2020,
payments and increased the limits for bank transactions in but were restructured due to the pandemic. The central bank
order to reduce the circulation of banknotes and the has also encouraged banks to extend flexibility to borrowers’
exchange of debit cards. loan terms based on pandemic-related circumstances and
encouraged the waiving or reducing of charges on mobile
money transactions to disincentivize the use of cash.

10 Lebanon On March 24, the central bank (1) lowered its policy rate by The Banque Du Liban (BDL) issued circular 547, allowing banks
100 bps to 7.25 percent; (2) lowered banks’ cash reserve ratio and financial institutions to extend exceptional five-year zero
by 100 bps to 4.25 percent; (3) increased the maximum tenor percent interest rate loans in Lebanese Pounds and in dollars
of repurchase agreements from 28 to 91 days; and (4) to customers that already have credit facilities but are unable
announced flexibility to banks regarding loan classification to meet their obligations, operating expenses, or pay the
and provisioning for loans that were performing on March 2, salaries to their employees during March, April and May 2020
2020, but were restructured due to the pandemic. The central as a result of the interruption of activity due to the COVID-19.
bank has also encouraged banks to extend flexibility to BDL will in turn provide banks and financial institutions five-
borrowers’ loan terms based on pandemic-related year zero percent interest rate credit lines in dollars equivalent
circumstances and encouraged the waiving or reducing of to the value of exceptional loans granted.
charges on mobile money transactions to disincentivize the
use of cash.
11 Republic of The government has announced an overall fiscal package of The ECB decided to provide monetary policy support through
Lithuania 2.5 billion euros (5 percent of GDP). Within this amount, (i) additional asset purchases of €120 billion until end-2020
spending measures by the General Government amounts to under the existing program (APP), and (ii) providing temporarily
1.1 billion euros (2.3 percent of GDP) which includes (i) additional auctions of the full-allotment, fixed rate temporary
additional funds for the healthcare system and emergency liquidity facility at the deposit facility rate and more favourable
management (500 million euros), (ii) additional funds for terms on existing targeted longer-term refinancing operations
caring for the sick and disabled, including for parents of (TLTRO-III) starting between June 2020 and June 2021. Further

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school children who now need to stay home, and support for measures included an additional €750 billion asset purchase
the self-employed (550 million euros), and (iii) co-financing of
program of private and public sector securities (Pandemic
climate change investment projects (about 20 percent of 250 Emergency Purchase Program, PEPP) until end-2020, an
million euros). In addition, the government expanded expanded range of eligible assets under the corporate sector
guarantee schemes, including guarantees for agricultural as purchase program (CSPP), and relaxation of collateral
well as SME loans by around 1.3 billion euros (2.6 percent of
standards for Eurosystem refinancing operations (MROs,
GDP). Finally, the government increased the borrowing limit LTROs, TLTROs).
by 5 billion euros (10 percent of GDP). The ECB Banking Supervision allowed significant institutions to
operate temporarily below the Pillar 2 Guidance, the capital
conservation buffer, and the liquidity coverage ratio (LCR). In
addition, new rules on the composition of capital to meet Pillar
2 Requirement (P2R) were front-loaded to release additional
capital. The ECB considers that the appropriate release of the
countercyclical buffer by the national macroprudential
authorities will enhance its capital relief measures. The ECB
Banking Supervision further decided to exercise – on a
temporary basis – flexibility in the classification requirements
and expectations on loss provisioning for non-performing loans
(NPLs) that are covered by public guarantees and COVID-19
related public moratoria; and recommended that banks avoid
pro-cyclical assumptions for the determination of loss
provisions. Furthermore, the ECB recommends that banks opt
for the IFRS9 transitional rules.
In addition to policies from the ECB, the Bank of Lithuania has
lowered its counter-cyclical capital buffer from 1 to 0 percent
(effective April 1) and has encouraged to be flexible and
negotiate, on a case-by-case basis, loan terms with borrowers
if necessary (within the existing regulatory framework).
12 Maldives To minimize the economic impact of the COVID–19 virus, the The Maldives Monetary Authority (MMA) has been in close
authorities announced on March 20 an Economic Recovery contact with the banks to discuss the impact on the domestic
Plan of 2.5 Billion rufiyaa (2.8 percent of GDP). Under the financial system and has identified the measures that can be
plan, the Government of Maldives will (i) reduce recurrent taken through the financial institutions to reduce economic
expenditure by 1 billion rufiyaa (1.1 percent of GDP); (ii) disruptions and loss of jobs and output. The announced

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increase the amount of funds allocated for the health sector; measures include: (i) reduction of the minimum required
(iii) subsidize 40 percent of electricity bills and 30 percent of reserves up to 5 percent as and when required; (ii) making
water bills for the months of April and May; and (iv) ensure available a short-term credit facility to financial institutions as
through banks, availability of working capital to businesses. and when required; (iii) introducing regulatory measures to
At the same time, the government intends to continue public enable a moratorium of 6 months on loan repayments for those
sector investment program (PSIP) projects as planned. impacted by the current situation (customers have to submit
their requests to the banks in order to avail themselves of this
moratorium).
13 Netherlands A package of fiscal measures was announced to contain the The ECB decided to provide monetary policy support through
economic impact of the outbreak. The package includes (i) additional asset purchases of €120 billion until end-2020
spending measures of about 10-20 billion euros (1-2 percent under the existing program (APP), and (ii) providing temporarily
of GDP) in the next three months, and covering (i) additional auctions of the full-allotment, fixed rate temporary
compensation of up to 90 percent of labor costs for liquidity facility at the deposit facility rate and more favourable
companies expecting a reduction in revenues of 20 percent or terms on existing targeted longer-term refinancing operations
more; (ii) compensation for affected sectors (hospitality, (TLTRO-III) starting between June 2020 and June 2021. Further
travel, and others); (iii) support for entrepreneurs and the measures included an additional €750 billion asset purchase
self-employed; (iv) scaling up of the short-time working program of private and public sector securities (Pandemic
scheme (unemployment benefit compensation available to Emergency Purchase Program, PEPP) until end-2020, an
companies needing to reduce their staff by at least 20 expanded range of eligible assets under the corporate sector
percent). In addition, companies can defer tax payments purchase program (CSPP), and relaxation of collateral
without penalties, and calculate provisional taxes on the basis standards for Eurosystem refinancing operations (MROs,
of expected reduced activity levels. Also, public guarantee LTROs, TLTROs).
schemes, especially for SME loans, are expanded to help the The ECB Banking Supervision allowed significant institutions to
most vulnerable companies to manage their liquidity operate temporarily below the Pillar 2 Guidance, the capital
problems. The total cost of these programs will depend on conservation buffer, and the liquidity coverage ratio (LCR). In
demand. addition, new rules on the composition of capital to meet Pillar
2 Requirement (P2R) were front-loaded to release additional
capital. The ECB considers that the appropriate release of the
countercyclical buffer by the national macroprudential
authorities will enhance its capital relief measures. The ECB
Banking Supervision further decided to exercise – on a
temporary basis – flexibility in the classification requirements
and expectations on loss provisioning for non-performing loans

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(NPLs) that are covered by public guarantees and COVID-19

related public moratoria; and recommended that banks avoid
pro-cyclical assumptions for the determination of loss
provisions. Furthermore, the ECB recommends that banks opt
for the IFRS9 transitional rules.
In addition, the Dutch central bank has reduced systemic buffer
requirements for the three largest banks to support bank
lending. The central bank is also taking measures to provide
temporary regulatory relief to less significant banking
institutions. Furthermore, the planned introduction of a floor
for mortgage loan risk weighting is postponed. In turn, the
largest Dutch banks have agreed to grant SMEs a six-month
postponement of their loan repayments.
14 Spain Key measures (about 0.7 percent of GDP, €8.9 billion; The ECB decided to provide monetary policy support through
depending on the usage and duration of the measures the (i) additional asset purchases of €120 billion until end-2020
amount could be higher) include budget support from the under the existing program (APP), and (ii) providing temporarily
contingency fund to the Ministry of Health (€1 billion); additional auctions of the full-allotment, fixed rate temporary
advance transfer to the regions for the regional health liquidity facility at the deposit facility rate and more favourable
services (€2.8 billion); additional funding for research related terms on existing targeted longer-term refinancing operations
to the development of drugs and vaccines for COVID-19 (€110 (TLTRO-III) starting between June 2020 and June 2021. Further
million); entitlement of unemployment benefit for workers measures included an additional €750 billion asset purchase
temporarily laid off under the Temporary Employment program of private and public sector securities (Pandemic
Adjustment Schemes (ERTE) due to COVID-19, with no Emergency Purchase Program, PEPP) until end-2020, an
requirement for prior minimum contribution or reduction of expanded range of eligible assets under the corporate sector
accumulated entitlement; increased sick pay for COVID-19 purchase program (CSPP), and relaxation of collateral
infected workers or those quarantined, from 60 to 75 percent standards for Eurosystem refinancing operations (MROs,
of the regulatory base, paid by the Social Security budget; an LTROs, TLTROs).
allowance for self-employed workers affected by economic The ECB Banking Supervision allowed significant institutions to
activity suspension; additional budgetary funds of €300 operate temporarily below the Pillar 2 Guidance, the capital
million and further budget flexibility for the provision of conservation buffer, and the liquidity coverage ratio (LCR). In
assistance to dependents; transfer of €25 million to addition, new rules on the composition of capital to meet Pillar
autonomous communities funding meals for children 2 Requirement (P2R) were front-loaded to release additional
affected by the school closure; and extension of the social capital. The ECB considers that the appropriate release of the

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benefit for energy provision. Further measures include countercyclical buffer by the national macroprudential
exemptions of social contributions by impacted companies authorities will enhance its capital relief measures. The ECB
that maintain employment under the ERTE; tax payment Banking Supervision further decided to exercise – on a
deferrals for small and medium enterprises and self- temporary basis – flexibility in the classification requirements
employed for six months (€14 billion); 50 percent exemption and expectations on loss provisioning for non-performing loans
from employer’s social security contributions, from February (NPLs) that are covered by public guarantees and COVID-19
to June 2020, for workers with permanent discontinuous related public moratoria; and recommended that banks avoid
contracts in the tourism sector and related activities; budgetpro-cyclical assumptions for the determination of loss
flexibility to enable transfers between budget lines; provisions. Furthermore, the ECB recommends that banks opt
centralization of medical supplies; and an emergency for the IFRS9 transitional rules.
management process for the procurement of all goods and In addition, the government of Spain has extended up to €100
services needed by the public sector to implement any billion government loan guarantees for firms and self-
measure to address COVID-19. employed; up to €2 billion public guarantees for exporters
through the Spanish Export Insurance Credit Company; and
guarantees for loan maturity extensions to farmers using the
special 2017 drought credit lines. These public guarantees
could leverage up to €83 billion of liquidity support to
companies through the private sector. Other measures include
additional funding for the Instituto de Crédito Oficial (ICO)
credit lines (€10 billion); introduction of a special credit line for
the tourism sector through the ICO (€400 million); one-month
moratorium on mortgage payments for the most vulnerable;
deferred repayment of loans granted to businesses by the
Ministry of Industry, Trade, and Tourism; ban of short-selling
Spanish shares in the stock market at least until April 17; and
authorization for special government screening of FDI in
strategic sectors.
15 Sri Lanka The government has allocated up to 0.1 percent of GDP for The Central Bank of Sri Lanka (CBSL) reduced monetary policy
quarantine and other containment measures, as well as US$5 rates by 25 basis points on March 16 and lowered the required
million (0.01 percent of GDP) to the SAARC COVID-19 reserve ratio on domestic currency deposits of commercial
Emergency Fund. The 2020 Q1 payment deadline for income banks by one percentage point to ease liquidity conditions. The
tax, VAT and certain other taxes has been extended until end- President has also announced a wide-ranging debt repayment
April. Other measures announced include tax exemptions for moratorium, which includes a six month moratorium on bank

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imported masks and disinfectant, price ceilings on essential loans for the tourism, garment, plantation and IT sectors,
food items such as eggs, lentils and fish, as well as related logistics providers, and small & medium size industries,
concessional loans and food allowances for low income with reduced rate working capital loans for these sectors. There
consumers (beneficiaries of the Samurdhi program). The will also be a six month moratorium on leasing loans for three-
President has also established a special fund for containment, wheelers, and a three-month moratorium on small-value
mitigation and social welfare spending, inviting local and personal banking and leasing loans. The interest rate on credit
foreign tax-free donations. cards will be capped, for transactions up to a certain amount,
with a reduction in the minimum monthly repayment. In
addition, the President has announced that state-owned
financial institutions will invest in treasury bonds and bills to
stabilize the money market interest rate at 7 percent.

Exchange Rate & Balance of Payments

The Sri Lankan authorities introduced exchange restrictions on
March 19 to reduce foreign exchange market pressures,
preventing Sri Lankan commercial banks from facilitating the
following activities for three months: (i) importing motor
vehicles under letters of credit (with some exceptions); and (ii)
importing other non-essential goods under letters of credit,
documents against acceptance, and advance payment.
Commercial banks will also be prohibited for three months
from purchasing Sri Lankan international sovereign bonds from
the market, to alleviate pressure on the currency.
16 Sweden The announced fiscal package amounts to SEK 174 billion or Key monetary measures include: (i) reduction of the lending
3.5 percent of 2019 GDP to SEK 462 billion or 9.2 percent of rate for overnight loans by 55 basis points to 0.2 percent (while
2019 GDP depending on uptake (the debt and deficit impact leaving the repo rate unchanged at 0 percent); (ii) lending of up
may deviate from these amounts). Measures include (i) to SEK 500 billion to companies via banks; (iii) introduction of a
additional expenditures on wage subsidies for short-term new lending facility whereby banks can borrow unlimited
leave, increase in transfers to relevant agencies to deal with amounts (given adequate collateral) with 3-month maturity;
the coronavirus outbreak and its repercussions, temporary (iv) increase of purchases of securities of up to SEK 300 billion
payment of sick leave by the government, capital injections this year (where securities may include government and
to SMEs, extra funding to the cultural sector and sports municipal bonds, covered bonds and securities issued by non-
associations (SEK 16.9 billion); (ii) the possibility to defer a financial corporations); (v) the establishment of a swap facility

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maximum of three month worth of payments of companies’ of USD 60 billion between the Riksbank and the US Federal
social contribution fees, VAT and payroll taxes for a period of Reserve (mutual currency arrangement); and (vi) the possibility
up to 12 months (SEK 27 billion if uptake similar to GFC, and for banks to borrow in US dollars against collateral of up to USD
SEK 315 billion if used by all firms to its maximum); and (iii) 60 billion.
credit guarantees for Swedish airlines (SEK 5 billion) and
expansion of the Swedish Export Credit Agency’s credit Key macro-financial policies include (i) easing of countercyclical
guarantee framework (SEK 50 billion) and the Swedish Export capital buffer by 2.5 percentage points; (ii) the possibility for
Credit Corporation (SEK 75 billion). To support the banks to temporarily breach the liquidity coverage ratio (LCR)
international response, the government has decided to for individual currencies and for total currencies; and (iii) the
contribute SEK 40 million to the WHO’s Contingency Fund for recognition that loss of income due to COVID-19 is a cause for
Emergencies exemption from the amortization requirement (banks and
borrowers may agree to reduce or suspend amortization
payments temporarily given loss of income linked to COVID-
19). Furthermore, the Swedish Financial Supervisory Authority
has urged banks and credit institutes under its supervision to
refrain from paying out dividends to its shareholders under the
current circumstances.
17 Germany In addition to running down accumulated reserves, the The ECB decided to provide monetary policy support through
federal government adopted a supplementary budget of (i) additional asset purchases of €120 billion until end-2020
€156 billion (4.9 percent of GDP) which includes: (i) spending under the existing program (APP), and (ii) providing temporarily
on healthcare equipment, hospital capacity and R&D additional auctions of the full-allotment, fixed rate temporary
(vaccine), (ii) expanded access to short-term liquidity facility at the deposit facility rate and more favourable
work (“Kurzarbeit”) subsidy to preserve jobs and workers’ terms on existing targeted longer-term refinancing operations
incomes, expanded childcare benefits for low-income parents (TLTRO-III) starting between June 2020 and June 2021. Further
and easier access to basic income support for the self- measures included an additional €750 billion asset purchase
employed, (iii) €50 billion in grants to small business owners program of private and public sector securities (Pandemic
and self-employed persons severely affected by the Covid-19 Emergency Purchase Program, PEPP) until end-2020, an
outbreak in addition to interest-free tax deferrals until year- expanded range of eligible assets under the corporate sector
end. At the same time, through the newly created economic purchase program (CSPP), and relaxation of collateral
stabilization fund (WSF) and the public development standards for Eurosystem refinancing operations (MROs,
bank KfW, the government is expanding the volume and LTROs, TLTROs).
access to public loan guarantees for firms of different sizes, The ECB Banking Supervision allowed significant institutions to
with an allocation of at least €825billion (25 percent of GDP). operate temporarily below the Pillar 2 Guidance, the capital

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In addition to the federal government’s fiscal package, many conservation buffer, and the liquidity coverage ratio (LCR). In
state governments (Länder) have announced own measures addition, new rules on the composition of capital to meet Pillar
to support their economies, amounting to €48 billion in direct2 Requirement (P2R) were front-loaded to release additional
support and €63bn in state-level loan guarantees. capital. The ECB considers that the appropriate release of the
countercyclical capital buffer by the national macroprudential
authorities will enhance its capital relief measures. The ECB
Banking Supervision further decided to exercise – on a
temporary basis – flexibility in the classification requirements
and expectations on loss provisioning for non-performing loans
(NPLs) that are covered by public guarantees and COVID-19
related public moratoria; it also recommended that banks
avoid pro-cyclical assumptions for the determination of loss
provisions and opt for the IFRS9 transitional rules. More
recently, ECB Banking Supervision asked banks to not pay
dividends for the financial years 2019 and 2020 or buy back
shares during COVID-19 pandemic, from which the conserved
capital should be used to support households, small businesses
and corporate borrowers and/or to absorb losses on existing
exposures to such borrowers.
The authorities extended all ECB-issued regulatory and
operational relief to German banks under national supervision.
In addition to measures at the euro area level: (i) release of the
countercyclical capital buffer for banks from 0.25 percent to
zero; (ii) additional €100 billion to refinance expanded short-
term liquidity provision to companies through the public
development bank KfW, in partnership with commercial banks;
and (iii) following the structure of the former Financial
Stabilization Fund, €100 billion is allocated within the WSF to
directly acquire equity of larger affected companies and
strengthen their capital position.
18 Thailand In response to COVID-19, Cabinet has approved fiscal stimulus The policy rate was reduced by 50 bps from 1.25 to 0.75
measures amounting to at least 3 percent of GDP or THB 518 percent during the first quarter of 2020. In addition, a number
billion consisting of: i) health-related spending, including of measures have been approved by Cabinet to help debtors

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preventive and remedial measures; ii) cash handouts and soft affected byCOVID-19: (i) additional loans for circulation capital
loans for 3 million workers outside the social security system; as well as reductions in interest and/or fees to make sure that
and iii) support for businesses through soft loans " from FIs debtors can keep their businesses operational; (ii) low interest
and Social Security Office, lower withholding tax and higher loans (at 2 percent interest for a period of 2 years, not over 20
tax expense deduction for SMEs, lower water and electricity million Baht per customer); (iii) relaxation of repayment
bills, and lower employees’ and employers’ social security conditions and debt restructuring by suspending the principal
contributions. The Ministry of Finance said that it plans to and reducing the interest rate for the debts to SFIs; and (iv)
announce more measures between April and July. relaxation of the maximum limit of personal loans for
emergency cases.
To lower the volatility of the government bond yield and ensure
the normal functioning of the government bond market, the
Bank of Thailand (BOT) purchased government bonds in excess
of 100 billion baht during 13-20 March 2020, and will do more
if necessary. The BOT reduced and cancelled BOT bond
issuance. The Ministry of Finance, the Securities and Exchange
Commission, and the BOT (i) set up a special facility to provide
liquidity for mutual funds through commercial banks (BOT’s
preliminary estimate of eligible bond mutual funds is
approximately THB 1 trillion); and (ii) set up a THB 70-100
billion Corporate Bond Stabilization Fund to invest in high-
quality, newly issued bonds by corporates to assist in debt
rollover.

Exchange Rate & Balance of Payments

The BOT has provided some liquidity in the FX market thereby

avoiding disorderly market conditions while also allowing the
exchange rate to adjust as a shock absorber.
19 Singapore On February 18, the 2020 Budget announced a package of On February 14, the Monetary Authority of Singapore (MAS)
measures amounting to S$6.4 billion to deal with the welcomed the announcements from banks and insurers in
economic slowdown and the uncertainties of the COVID-19 Singapore to support their customers facing financial
outbreak. Funds to contain the outbreak, provided mainly to difficulties brought about by the impact of COVID outbreak,
the Ministry of Health, amount to S$800 million. The Care and while adhering to prudent risk assessments. The support

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Support Package provides support to households (S$1.6 announced by banks include moratoriums on repayments for
billion), including through a cash payout and an additional affected corporate and individual customers, extension of
goods and services tax (GST) voucher. The Stabilization and payment terms for trade finance facilities, and additional
Support Package provides support to businesses (S$4.0 financing for working capital.
billion), including wage subsidies as well as additional supportOn March 19, 2020, the MAS announced the establishment of
for industries directly affected and self-employed persons. a US$60 billion swap facility with the US Federal Reserve. The
On March 26, a supplementary budget was announced with MAS intends to draw on this swap facility to provide USD
additional measures worth over S$48 billion. The package liquidity to financial institutions in Singapore.
includes, among other items, an expansion of wage subsidies, On March 23, the MAS announced that the six-monthly
a tripling of cash payouts to households, enhancement of monetary policy statement will be issued on March 30. This is
financing schemes and setting aside loan capital of S$20 slightly earlier than the usual timing of mid-April.
billion, and additional support to the most affected sectors. On March 26, the MAS announced that the first auction under
the US$60 billion MAS USD Facility with the Federal Reserve
will be conducted on March 27, 2020, where US$10 billion in 7-
day funds will be offered. MAS will conduct another two
auctions on March 30, where US$12 billion in 7-day funds and
US$8 billion in 84-day funds will be offered. After this, regular
weekly auctions will be conducted every Monday.
20 Hong Kong An estimated HK$152 billion (or 5.3 percent of GDP) of fiscal Under the currency board arrangement, the Base Rate was
measures have been approved and are being implemented. adjusted downward to 1.50 and 0.86 percent on March 4 and
Key measures include (i) establishment of a new Anti- March 16, respectively, according to a pre-set formula,
Epidemic Fund (HK$30 billion or 1.0 percent of GDP) to following the downward shifts in the target range for the US
enhance anti-epidemic facilities and services; (ii) tax and fee federal funds rate. The jurisdictional countercyclical capital
reliefs and other one-off relief measures (HK$51 billion or 1.8 buffer for Hong Kong SAR was reduced further from 2.0 to 1.0
percent of GDP); and (iii) cash payout to Hong Kong SAR percent on March 16. Key measures to provide financial relief
permanent residents aged 18 or above (HK$71 billion or 2.5 include: (i) the introduction of low-interest loans for SMEs with
percent of GDP). 100 percent government guarantee; and (ii) other measures by
banks to the extent permitted by their risk management
principles, including delay of loan payment, extension of loan
tenors, and principal moratoriums for affected SMEs, sectors,
and households as appropriate.

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21 China An estimated RMB 1.3 trillion (or 1.2 percent of GDP) of fiscal The PBC provided monetary policy support and acted to
measures have been approved and are being implemented. safeguard financial stability. Key measures include: (i) liquidity
Key measures include: (i) Increased spending on epidemic injection into the banking system, including RMB 3 trillion in the
prevention and control. (ii) Production of medical equipment. first half of February and 20 billion in end-March, (ii) expansion
(iii) Accelerated disbursement of unemployment insurance. of re-lending and re-discounting facilities by RMB 1.8 trillion to
(iv) Tax relief and waived social security contributions. The support manufacturers of medical supplies and daily
overall fiscal expansion is expected to be significantly higher, necessities micro-, small- and medium-sized firms and the
reflecting the effect of already announced additional agricultural sector at low interest rates, (iii) reduction of the 7-
measures—including higher infrastructure investment and day and 14-day reverse repo rates by 30 and 10 bps,
improvements of the national public health emergency respectively, as well as the 1-year medium-term lending facility
management system—and automatic stabilizers. rate by 10 bps, (iv) targeted RRR cuts by 50-100 bps for banks
that meet inclusive financing criteria which benefit smaller
firms and an additional 100 bps for eligible joint-stock banks to
support private SMEs, and (v) policy banks’ credit extension to
micro- and small enterprises (RMB 350 billion).
The government has also taken multiple steps to limit
tightening in financial conditions, including measured
forbearance to provide financial relief to affected households,
corporates, and regions facing repayment difficulties. Key
measures include (i) delay of loan payments and other credit
support measures for eligible SMEs and households, (ii)
tolerance for higher NPLs for loans by epidemic-hit sectors and
SMEs, (iii) support bond issuance by financial institutions to
finance SME lending, (iv) additional financing support for
corporates via increased bond issuance by corporates, (v)
increased fiscal support for credit guarantees, (vi) flexibility in
the implementation of the asset management reform, and (vii)
easing of housing policies by local governments.

Exchange Rate and Balance of Payments

The exchange rate has been allowed to adjust flexibly. A ceiling
on cross-border financing under the macroprudential

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assessment framework was raised by 25 percent for banks,

non-banks and enterprises.
22 Italy The government adopted a €25 billion (1.4 percent of The ECB decided to provide monetary policy support through
GDP) emergency package. It includes (i) funds to strengthen (i) additional asset purchases of €120 billion until end-2020
the Italian health care system and civil protection (€3.2 under the existing program (APP), and (ii) providing temporarily
billion); (ii) measures to preserve jobs and support income of additional auctions of the full-allotment, fixed rate temporary
laid-off workers and self-employed (€10.3 billion); (iii) other liquidity facility at the deposit facility rate and more favourable
measures to support businesses, including tax deferrals and terms on existing targeted longer-term refinancing operations
postponement of utility bill payments in most affected (TLTRO-III) starting between June 2020 and June 2021. Further
municipalities (€6.4 billion); as well as (iv) measures to measures included an additional €750 billion asset purchase
support credit supply (€5.1 billion) aimed to unlock about program of private and public sector securities (Pandemic
€350 billion (20 percent of GDP) of liquidity for businesses and Emergency Purchase Program, PEPP) until end-2020, an
households (see below). The authorities indicated that expanded range of eligible assets under the corporate sector
additional steps could be taken if needed. purchase program (CSPP), and relaxation of collateral
standards for Eurosystem refinancing operations (MROs,
LTROs, TLTROs).
The ECB Banking Supervision allowed significant institutions to
operate temporarily below the Pillar 2 Guidance, the capital
conservation buffer, and the liquidity coverage ratio (LCR). In
addition, new rules on the composition of capital to meet Pillar
2 Requirement (P2R) were front-loaded to release additional
capital. The ECB considers that the appropriate release of the
countercyclical capital buffer by the national macroprudential
authorities will enhance its capital relief measures. The ECB
Banking Supervision further decided to exercise – on a
temporary basis – flexibility in the classification requirements
and expectations on loss provisioning for non-performing loans
(NPLs) that are covered by public guarantees and COVID-19
related public moratoria; it also recommended that banks
avoid pro-cyclical assumptions for the determination of loss
provisions and opt for the IFRS9 transitional rules. More
recently, ECB Banking Supervision asked banks to not pay
dividends for the financial years 2019 and 2020 or buy back

Page | 49
School of Public Policy & Governance, TISS- Hyderabad Sarayu & Tanniya

shares during COVID-19 pandemic, from which the conserved

capital should be used to support households, small businesses
and corporate borrowers and/or to absorb losses on existing
exposures to such borrowers.
Key measures adopted in the government’s emergency
package include: a moratorium on loan repayments for some
households and SMEs, including on mortgages and overdrafts;
state guarantees on loans to SMEs; incentives for financial and
non-financial companies in the form of Deferred Tax Activities;
state guarantee of €0.5 billion to the state development bank—
Cassa Depositi e Prestiti—to support lending and liquidity to
banks to enable them to finance medium- and large-sized
companies.
The Bank of Italy have announced a series of measures to help
banks and non-bank intermediaries under its supervision, in
line with the initiatives undertaken by the ECB and the EBA.
These include the possibility to temporary operate below
selected capital and liquidity requirements; extension of some
reporting obligations; and rescheduling of on-site inspections.
IVASS (Insurance supervisory authority) followed the EIOPA
recommendations and called insurance companies to be
prudent about dividends and bonus payments to protect their
capital position; insurance companies are asked to provide
updated Solvency II ratios on a weekly basis.
CONSOB called a three-month ban on shorting of all shares and
lowered a minimum threshold beyond which it is required to
communicate the participation in a listed company. These
measures are aimed to contain the volatility of the financial
markets and to strengthen the transparency of the holdings in
the Italian companies listed on the Stock Exchange.

Page | 50
iNew control material developed by JRC Scientists
https://ec.europa.eu/jrc/en/news/new-control-material-developed-jrc-scientists-help-prevent-coronavirus-
test-failures

ii
5 reasons the world needs WHO, to fight the COVID-19 pandemic
https://news.un.org/en/story/2020/04/1061412

iii
Government support schemes for COVID-19, Brazil - https://www.tmf-group.com/en/news-
insights/coronavirus/government-support-schemes/

iv
China to support small and micro businesses, agricultural entities with government financing guarantee -
http://www.china.org.cn/business/2020-04/02/content_75888937.htm

v Government support schemes for COVID-19, Italy - https://www.tmf-group.com/en/news-

insights/coronavirus/government-support-schemes/

viAGerman import to fight the economic impact of the coronavirus -

https://thehill.com/opinion/international/488484-a-german-import-to-fight-the-economic-impact-of-the-
coronavirus

vii
Brazilian Govt’s provisional measure no. 927 for employers to preserve jobs during the COVID-19 crisis -
https://www.machadomeyer.com.br/en/recent-publications/publications/labor/page-25

viii
COVID-19 crisis: Employment
https://www2.deloitte.com/lt/en/pages/legal/articles/covid-19-crisis--employment-law-in-lithuania.html

ixThe following measures taken by the Government of the Czech Republic in fighting the Covid-19
https://www.czechtradeoffices.com/en/il/news/the-following-measures-taken-by-the-government-of-the-
czech-republic-in-fighting-the-covid-19

xPortugal to Treat Migrants as Residents During Coronavirus Crisis -

https://www.news18.com/news/world/portugal-to-treat-migrants-as-residents-during-coronavirus-crisis-
2555299.html

xiCOVID-19: Special clinic for expatriate workers established at Hulhumale' preschool - https://raajje.mv/72934

xii
Lebanon: Direct COVID-19 Assistance to Hardest Hit
https://www.hrw.org/news/2020/04/08/lebanon-direct-covid-19-assistance-hardest-hit

xiii
IMF- Policy Tracker
https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19#U

xiv
World travel and tourism Council: Covid-19 Related Policy Shifts Supportive of Travel & Tourism Sector,
Portugal - https://www.wttc.org/government-advice/
xvReport on the comprehensive economic policy response to the COVID-19 pandemic
https://www.consilium.europa.eu/en/press/press-releases/2020/04/09/report-on-the-comprehensive-
economic-policy-response-to-the-covid-19-pandemic/

xvi
COVID-19 coronavirus outbreak and the EU's response
https://www.consilium.europa.eu/en/policies/covid-19-coronavirus-outbreak-and-the-eu-s-response/

xvii
Enhancing central bank cooperation in the COVID-19 pandemic
https://www.piie.com/blogs/realtime-economic-issues-watch/enhancing-central-bank-cooperation-covid-19-
pandemic

xviii
CNB adopts stabilizing measures in connection with coronavirus epidemic
https://www.cnb.cz/en/cnb-news/press-releases/CNB-adopts-stabilising-measures-in-connection-with-
coronavirus-epidemic/

xix
Press Release: Emergency measures to mitigate the adverse economic effect on bank borrowers from the
coronavirus pandemic
https://www.centralbank.go.ke/uploads/press_releases/1908080057_Press%20Release%20-
%20Emergency%20Measures%20to%20Mitigate%20the%20Adverse%20Economic%20Effects%20on%20Bank%2
0Borrowers%20from%20the%20Coronavirus%20Pandemic.pdf

xxIntervention by Central Banks on the economic impact of COVID-19

http://eabc-online.com/membership/benefits?id=267

xxi
President announces relief measures to people amid COVID-19
https://www.newsfirst.lk/2020/03/23/president-grants-concessions-for-the-people-amid-covid-19/

xxii
WHO and UNICEF to partner on pandemic response through COVID-19 Solidarity Response Fund
https://www.unicef.org/press-releases/who-and-unicef-partner-pandemic-response-through-covid-19-
solidarity-response-fund

xxiii
5 reasons the world needs WHO, to fight the COVID-19 pandemic
https://news.un.org/en/story/2020/04/1061412

xxiv
5 reasons the world needs WHO, to fight the COVID-19 pandemic
https://news.un.org/en/story/2020/04/1061412

xxvUN releases $15 million to help vulnerable countries battle the spread of the coronavirus
https://www.unicef.org/turkey/en/press-releases/un-releases-15-million-help-vulnerable-countries-battle-
spread-coronavirus

xxviIMF Executive Board Approves Immediate Debt Relief for 25 Countries

https://www.imf.org/en/News/Articles/2020/04/13/pr20151-imf-executive-board-approves-immediate-debt-
relief-for-25-countries
xxvii
ADB Triples COVID-19 Response Package to $20 Billion
https://www.adb.org/news/adb-triples-covid-19-response-package-20-billion

xxviii
Legal Update- COVID19: Immediate Measures to Gain State Aid Financing
https://www.lathamgermany.de/2020/03/legal-update-covid-19-immediate-measures-to-gain-state-aid-
financing-kfw-credit-et-al/

1.
Brookings India. (2020, April 2). www.brookings.edu. Retrieved from
https://www.brookings.edu/2020/04/02/the-early-days-of-a-global-pandemic-a-timeline-of-covid-19-
spread-and-government-interventions/
Center for Statigic and Intenational Studies. (2020, April 13). www.csis.org. Retrieved from
https://www.csis.org/analysis/breaking-down-g20-covid-19-fiscal-response
worldometers. (2020). Retrieved from https://www.worldometers.info/

2. Cover Page Image of the Globe: Smartcat

https://www.smartcat.ai/blog/global-marketing-strategies-how-to-reap-the-rewards-of-international-
opportunity/

3. ‘Takeaway’s from the Globe’, Pg. 32, background Image of Globe: ShutterStock
 SCHOOL OF PUBLIC POLICY AND GOVERNANCE
TATA INSTITUTE OF SOCIAL SCIENCES
HYDERABAD