VANUATU GOVERNMENT FINANCIAL AND ECONOMIC STIMULUS Second Rollout – COVID-19
Supporting workers, business and communities
The Government is pleased to provide more details on the three schemes under the Second Policy Stimulus. The package aims to give some breathing space to businesses in need, by supporting cash flow while they plan for and adapt to the ‘new normal’. The Government sees this as an opportunity for businesses to adapt to these challenges and find opportunities in this new economic environment. These 3 schemes are:
support monthly cash flow until the end of 2021 for all businesses with an annual turnover of less than VT 4 million;
Small Business Grant (SBG)
Eligibility Criteria (SBG)
Businesses that have a valid license (as defined below) for one or more of the following periods: - 2020 or 2021 (registered prior to 30 April 2021)Businesses that hold one of the following licenses (and provide a true copy of this license in their application) issued by a licensing authority as per the Business License Act No. 19 of 1998:
Valid Business License Certificate with a certified stamp and signature from authorized authority.
Liquor License Certificate with a certified stamp and signature from relevant authority.
Fishing License Certificate with a certified stamp and signature from relevant authority. No other licenses, permits or receipts will be accepted in lieu of the above licenses. For the avoidance of doubt, RSE/SWP/PLS agent permits, casino licenses, gaming licenses, lottery licenses and environmental licenses will not be accepted as proof of eligibility.
Businesses that declared an actual turnover for the previous year of less than VT 4 million in their business license application. Or Businesses that declared less than VT4 million turnover in their 2020 VAT returns submitted to DCIR. Or Businesses with a license issued by a provincial authority (i.e. from a provincial government) that does not include a record of declared actual turnover from the previous year.
Businesses that submit an application form, in a format provided by MFEM, ensuring all fields required are provided, including: • Contact details for the business owner • Bank account details for the business (or a written letter from the owner to confirm alternative payment arrangements) and a letter from their bank confirming these details and that the bank account is active • A declaration that all information provided is accurate Businesses that do not benefit from the Wage Subsidy scheme (businesses that are eligible for both schemes may choose which scheme to apply for)
Wage Subsidy Scheme (WSS)
to support businesses that are VAT-registered and distressed (‘faenem se hemi hard blong winem mani’) with their staffing costs until the end of 2021
Eligibility Criteria (WSS)
Businesses that have a valid license for 2021 (and provide a true copy of this license) issued by a licensing authority as per the Business License Act No. 19 of 1998.Businesses that are registered with VNPF and have been contributing to their employee’s VNPF Businesses that were registered for VAT and submitted returns in 2019 and 2020 Businesses that are identified as ‘distressed’ based on a stress test indicating a reduction in turnover equal to or greater than 30% when comparing:
a) December 2020 and December 2019, or
b) the fourth quarter of 2020 and the fourth quarter of 2019
Businesses that submit an application form, in a format provided by MFEM, ensuring all fields required are provided, including:
Contact details for the business owner
Bank account details for the business (or a written letter from the owner to confirm alternative payment arrangements) and a letter from their bank confirming these details and that the bank account is active
A declaration that all information provided is accurate Businesses that do not benefit from the SBG scheme (businesses that are eligible for both schemes may choose which scheme to apply for)
Special COVID-19 Banking Facility (SCBF) - VT 900 million
to stabilise businesses’ balance sheets while they remain in business, which has the potential to run for as long as five years.
The Department of Finance and Treasury (DoFT) has been providing third party services to government employees and business entities towards employees’ personal financial needs – generally by discharging their consents via the government payroll system. In nature, it involves direct deductions from the government employee wages to the beneficiaries’ (Business Institutions) bank accounts.
Up from November, 2017, this service was tailored in such a way that it was formally organized so that both parties were protected by way of legal arrangements, etc. Thus, a few institutions started off with this formality. But over the years, as the number of employees increased, the needs of the employees eventually diversified so as to meet their needs/livelihoods. Hence, the need to bring on board more institutions to this service.
From our experience, the different institutions that have been recognized are:
Micro-Financiers
Commercial Banks
Other Instiutions
1. Micro-Financiers
These are individuals/entities operating as sole proprietorship and offering financial services. But are not registered as banks. And offer loans/advances up to 3 months.
2. Commerical Banks
These are entities that are duly registered under the Reserve Bank of Vanuatu Act and offer loans/advances of more than 3 months. And their requirements are standardized and rigorous.
3. Other Institutions
These are non-commercial banks, privately owned businesses registered as cooperative schemes, savings and loans schemes by political groups and organisations involving public servants. Some these, include, Vanuatu National Provident Fund and Computer World.
Requirements
The Department of Finance & Treasury, recongizing how these entitties play an important/significant role in aiding employees to meet their needs, is now expanding this service in a way that all institution that are interested in this service are most welcome to register. However, all that are interested to register should adhere to these requirements:
Should have a valid Business License;
Should have a valid Vanuatu Financial Services Certificate;
Should have a Bank Confirmation detailing the entitie's banking details;
Should have a FIU Clearance/Certification;
Should have completed the required application form i.e. both soft copy and hard copy. The hard copy should be signed by the applicant; The application form can be download from here.
Please, do note, that the Department of Finance & Treasury, reserves the right to amend these requirements depending on future circumstance if any may arise. However, will make every effort to disseminate any changes as they arise.
Confirmation of registration
The Department of Finance & Treasury shall notify each applicant the status of his/her application and, with due diligence , complete the registration process within 1 month of receiving an application. If there is any delay in the process, please do not hesitate to contact us by email: This email address is being protected from spambots. You need JavaScript enabled to view it. or by phone: 24543.
