Special Covid-19 Banking Facility (SCBF)

 SPECIAL COVID-19 BANKING FACILITY (SCBF)

 Background

To address the excess liquidity in the banking system, the Ministry of Finance and Economic Management (MFEM) has  issued VT 3 billion worth of bonds in September 2020 to subsidise credit to individuals and businesses through the National Bank of Vanuatu (NBV) and the Vanuatu Agriculture Development Bank (VADB). This proposed expenditure was appropriated in Supplementary Appropriation (2020) Act No. 10 of 2020.

While the original plan was for the National Bank of Vanuatu(NBV)  to be the only retail bank participating in a Concessional Loan Programme, concerns relating to the potential stress of NBV having such a large sum of subsidised credit on its balance sheet meant that MFEM expanded its offer to other retail banks.

Thus,  the Ministry of Finance and Economic Management (MFEM) had discussions with retail banks about this scheme.

 It has been renamed to the Special COVID-19 Banking Facility (SCBF).

The Special Covid-19 Banking Facility (SCBF) proposes a partnership between the following entities:

  • Vanuatu’s major retail banks;
  • Ministry of Finance and Economic Management (MFEM);
  • Reserve Bank of Vanuatu (RBV).

The SCBF proposal reflects discussions between MFEM officials and staff of commercial banks, facilitated and assisted by RBV staff. At this stage, the SCBF proposal is a draft as details are still being worked out.

Policy Proposal

The goal of the SCBF is to use the Government’s funding through the retail banking system and RBV, to provide concessional interest rate bridging loans and overdraft extensions to select customers. The SCBF aims to assist the cash-flow and working capital requirements of select customers who have been struggling with daily operational costs, in order to sustain businesses and promote economic stability.

Details, conditions and sectoral scope of the SCBF

Details

The SCBF entails the provision of VT 900 million of support to the nation’s major retail banks, for concessional lending to business clients.

The focus will be clients on Covid-19 packages. Other bank customers will be serviced by products offered through the normal bank lending terms and conditions. The VT 900 million of support will be held in the Government’s account at RBV and made available as a guarantee.

The VT 900 million will be divided among all banks who choose to participate in the SCBF. If a bank does not take up its full quota then the Government will review the allocation after three months of the SCBF being active, and may decrease that bank’s allocation while increasing another’s/ others’.

The guarantee will apply only to the overdraft extension and bridging loan elements of the bank customers’ total loans and overdrafts. That is, the guarantee will not apply to the loan and overdraft elements that existed prior to the banks’ letters of offer for overdraft extensions and bridging loans being made.

The guarantee will cover the full, principal amount (100%) of the overdraft extension drawn down and bridging loan taken out. The guarantee will not apply to the interest charges associated with the overdraft extensions and bridging loans.

The guarantee will apply for the duration of the termed loan, up to a maximum period of five years.

The guarantee would become callable 120 days after a bank’s customer defaults on his/her loan.

This provides for a 30 day grace period after the 90 day non-performing loan period is realised (noting the RBV prudential guideline).

The guarantee requires the consent of Parliament by approval of a motion presented by the Honorable Minister of Finance to be presented in the next parliament sitting.

Conditions

Each bank customer will be limited to one bridging loan/ extension of overdraft to which the SCBF will apply. This means that MFEM will need to undertake screening to ensure, for example, that one customer does not take up the SCBF from multiple retail banks. 

The value of the loan to be guaranteed under the SCBF will be capped, at an amount determined by the Minister of Finance.

The purpose of this, is two-fold. First, it will ensure that the SCBF support covers a spread of clients. Second, it will limit the risk to the state of guaranteeing the overdraft extension/ bridging loan (by not having one very large loan that becomes impaired and which the Government is obligated to provide funding for through the calling upon of the guarantee).

Sectoral scope

Aside from the conditions set out above, the banks will be free to choose which clients will benefit from the SCBF. This reflects the reality that banks know best their customers’ needs and the associated risks. It means too that the banks are free to draw from across their lending sectors (e.g. tourism, construction, personal) – with the one exception of government entities.

Next steps

  1. Further discussions to be held with retail banks, including specific terms and conditions.
  2. Participating retail banks to be confirmed.
  3. Commercial agreement between Government and retail banks to be drawn up.

Guarantee to be drafted, finalised and deposited as a motion in the next Parliament sitting.

 WAGE SUBSIDY SCHEME (WSS)

 The Government through the Council of Minister's Decision No. 036 of 2022 has approved the rollout of a Third Policy Stimulus to assist businesses cushion the impact of the current COVID-19 restrictions due to community transmission in Vanuatu. The Council of Ministers has approved a number of programs under the third policy stimulus to support businesses. This package aims to give some breathing space to businesses in need, by supporting cash flow while they adapt to the 'new normal'. The Government sees this as an opportunity for businesses to adapt to these challenges and find opportunities in this economic environment. These schemes are:

  • Small Business Grant (SBG) to support monthly cash flow until the end of August 2022 for all businesses with an annual turnover of less than VT 4 million;
  • and a 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 August 2022.

Wage Subsidy Scheme (WSS)

Under this scheme, the Government will pay distressed businesses (as identified through a ‘stress test’ detailed below) 50% of the monthly wage level of each VNPF-registered employee, up to a maximum of VT 15,000 per month, over 6 months (from March to August 2022). The Ministry of Finance and Economic Management has already compiled a list of firms that meet the stress test and are eligible for help under this scheme.

A list of businesses license numbers of eligible firms has already been provided to the Vanuatu Chamber of Commerce and Industry, so if you are unsure whether you are eligible and would like confirmation before you apply, please contact them by telephone on 27543 or by email at This email address is being protected from spambots. You need JavaScript enabled to view it. ; for confidentiality reasons, only business license numbers (and not names) of eligible businesses have been provided to VCCI. Staff from the Ministry of Finance and Economic Management will be working to contact these firms over the coming weeks to let them know they are eligible for this scheme.

The list of the Businesses can be found:Download here.

Eligible businesses must continue to pay their employees their total correct wage and VNPF contributions as normal, and then the Government will check VNPF submissions and reimburse the business afterwards for 50% of the wage up to a total of VT 15,000.Business are required to submit their VNPF employer receipts and schedule from February 2022 to date.

Application process:

  • Please download an application form in the format of an Excel spreadsheet from the website for the Department of Finance and Treasury www.doft.gov.vu (to do this you need to have access to a computer with the Microsoft Excel application)
  • Fill in the Excel spreadsheet and make a copy of your business license and your VNPF Employer Certificate
  • Submit the Excel spreadsheet and copies of your business license and your VNPF Employer Certificate with ‘Wage Subsidy Scheme’ in the subject line to This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it.
  • If your do not have access to a computer with Microsoft Excel, please contact the Vanuatu Chamber of Commerce and Industry, by calling them on 27543 or by emailing them at This email address is being protected from spambots. You need JavaScript enabled to view it. They will be able to advise you of the process of submitting without Microsoft Excel.

Please direct any queries you may have to the Vanuatu Chamber of Commerce and Industry, by calling them on 27543 or by emailing them at This email address is being protected from spambots. You need JavaScript enabled to view it.

For the purposes of this scheme, any business applying for the scheme must:

(a) have a valid business license for 2021;

(b) be registered for VAT and have submitted returns in 2020 and 2021;

(c) be identified as ‘distressed’ by MFEM, based on a stress test detailed below; and

(d) be registered with VNPF and have been contributing to their employees’ VNPF since at least February 2022.

Stress Test

Businesses will be identified as distressed based on a test that shows a reduction in turnover as declared in VAT returns. The amount of the fall in turnover that is required to meet the test will be equal to or greater than 30% (when comparing either turnover experienced in December 2021 against turnover experienced in December 2020, or turnover experienced in the 4th quarter of 2021 against turnover experienced in the 4th quarter of 2020). To calculate this, we take the 2020 value, minus the 2021 value, and divide this number by the 2020 value. If the result is equal to or greater than 0.3 (or 30%) then the business will be eligible for the Wage Subsidy Scheme.

Eligibility Criteria

  • All businesses that are already eligible under the Second Policy Stimulus
  • 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 2021 and December 2020, or

b) the fourth quarter of 2021 and the fourth quarter of 2020

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)

Download application form here.

Small Business Grant  (SBG)

The Government through the Council of Minister's Decision No. 036 of 2022 has approved the rollout of a Third Policy Stimulus to assist businesses cushion the impact of the current COVID-19 restrictions due to community transmission in Vanuatu.

The Council of Ministers has approved a number of programs under the third policy stimulus to support businesses. This package aims to give some breathing space to businesses in need, by supporting cash flow while they adapt to the 'new normal'. The Government sees this as an opportunity for businesses to adapt to these challenges and find opportunities in this economic environment. These schemes are:

  • a Small Business Grant (SBG) to support monthly cash flow until the end of August 2022 for all businesses with an annual turnover of less than VT 4 million; and a
  • 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 August 2022.

Small Business Grant

Under this scheme, the Government will issue a grant of VT 15,000 per month for a period of 6 months (covering March to August 2022) to eligible small businesses. For the purposes of this scheme, any business applying for the scheme must have:

a) been issued a business license, fishing license or liquor license from the Department of Customs and Inland Revenue or a provincial government or a Municipality permit between 1 January 2021 and 15 March 2022; and

b) reported an actual annual turnover for the previous year, or an estimated annual turnover for the current year of less than VT 4 million in their application for that license, or have a business licence issued by a provincial government that does not include details of turnover for the previous year.

Application process:

If you meet the eligibility criteria below, you can submit an application in any one of the ways detailed below.

Can access a computer with Microsoft Excel (anywhere in Vanuatu):

  • Download an application form in the format of an Excel spreadsheet from the website for the Department of Finance and Treasury doft.gov.vu/stimulus (to do this you need to have access to a computer with the Microsoft Excel application)
  • Fill in the Excel spreadsheet and take a scan/photo of your business licence and a signed letter from your bank confirming your business bank account details and that the bank account is active
  • Submit the Excel spreadsheet and photos/scans of your business licence and the letter from bank by email, with ‘Small Business Grant’ in the subject line, to only one of the three following organisations:
    • Any applicants can submit their completed application form and documents to VCCI at This email address is being protected from spambots. You need JavaScript enabled to view it.
    • Members of the Public Land Transport Authority can submit their completed form and documents to This email address is being protected from spambots. You need JavaScript enabled to view it.
    • Members of a handicraft association can submit their completed form and documents to This email address is being protected from spambots. You need JavaScript enabled to view it.

No access to a computer with Microsoft Excel and located in Port Vila, Efate:

  • Go to VCCI opposite Shefa Provincial Headquarters in Port Vila with your business licence and a signed letter from your bank confirming your business bank account details and that the bank account is active. They can help you to complete the form. You can call them on 27543 for more details.
  • If you are a member of Public Land Transport Authority, go to Public Land Transport Authority office in Port Vila with your business licence and a signed letter from your bank confirming your business bank account details and that the bank account is active. They can help you to complete the form. You can call them on 7693381 or 5039377for more details.
  • If you are a member of a handicraft association, you can call Nadia Kanegai on 774 1059 to arrange to meet with her to complete your application. When you meet her, please bring your business licence and a signed letter from your bank confirming your business bank account details and that the bank account is active. She can help you to complete the form.

 Please direct any queries you may have to:

Industry

Contact Name

Phone number

Email address

Any applicants in Port Vila

Vanuatu Chamber of Commerce and Industry

27543

This email address is being protected from spambots. You need JavaScript enabled to view it.

Members of Public Land Transport Authority in Port Vila

Public Land Transport Authority

Landline: 22252 or 33200

Mobile phone: 7693381 or 5039377

This email address is being protected from spambots. You need JavaScript enabled to view it.

Members of a handicraft association in Port Vila

Nadia Kanegai

774 1059

This email address is being protected from spambots. You need JavaScript enabled to view it.

Any applicants in Sola, Torba Province

Davis Pakoa Kalangis

38501

This email address is being protected from spambots. You need JavaScript enabled to view it.

Any applicants in Saratamata, Penama

Pauline Taribiti

38001

This email address is being protected from spambots. You need JavaScript enabled to view it.

Any applicants in Luganville, Sanma

Veronic Loloso

37039

This email address is being protected from spambots. You need JavaScript enabled to view it.

Any applicants in Lakatoro, Malampa

Marie George Theuil

48400

This email address is being protected from spambots. You need JavaScript enabled to view it.

Any applicants in Lenakel, Tafea

Johnly Maukura

88014

This email address is being protected from spambots. You need JavaScript enabled to view it.

Any applicants anywhere else in Vanuatu

Area Administrator

See your Area Administrator & Area Secretary list: Area Council list

Eligibilit Criteria

All businesses that have already applied and benefited from the Second Policy Stimulus.

Businesses that have a valid license (as defined below) for one or more of the following periods:

-          2021 or

-          2022 (registered prior to 15 March 2022)

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.
  • Open food vendors or kava bars with a permit from the municipalities.

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 2021 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)

 Download application form here

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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:

  1. Valid Business License Certificate with a certified stamp and signature from authorized authority.
  2. Liquor License Certificate with a certified stamp and signature from relevant authority.
  3.  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.
  • More information to be provided soon!!