VANUATU GOVERNMENT FINANCIAL AND ECONOMIC STIMULUS – COVID-19
Supporting workers, business and communities
The Government is spending VT4.2 billion in fiscal stimulus, which is equivalent to around 5.5 per cent of annual gross domestic product (GDP).
The economic response is helping to keep people employed, address short-term cash flow challenges and set up medium and longer term recovery efforts.
Employment Stabilization Payment (ESP) – VT 2.5 billion
The Government is helping businesses to keep workers employed by paying eligible businesses VT30,000 for every registered worker for the months of March, April, May and June. Application forms and further details are available here:
Small & Medium Enterprise(SME) Grant - VT400 million
The Government will pay a one-time cash grant of VT60,000 to every small and medium business that has an annual turnover of VT200 million or less. Application forms and further details are available here:
Tuition Fee Exemption – VT510.3 million
The Government will pay VT42, 000 per student directly to all public and private schools so parents do not need to pay school fees. The Ministry of Education will provide further details as to how the payments will be disbursed to schools that are qualified.
Commodity Support Grant - VT300 million
The Government is supporting farmers and agricultural businesses with a focus on kava, cocoa, coffee and copra exports. Further details will be announced soon to explain how this grant will be paid.
Shipping Support Grant - VT100 million
The Government is supporting communities impacted by TC Harold by covering the cost of shipping market produce from affected islands to Port Vila.
What happens after June 2020?
Recovery and Reconstruction Package - VT3 billion
At the end of June, the Government will release the national strategy for medium and long term recovery and reconstruction from COVID-19, TC Harold and the Tanna volcano ash fall. This will include a credit facility to help businesses with recover recovery and reconstruction efforts.
Further details will be announced soon to explain how this package will be implemented.