16 Jul2021

 Special Covid-19 Banking Facility (SCBF)

Written by Author. Posted in Vanuatu Government Recommended Financial and Economic Stimulus – COVID 19

 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.

16 Jul2021

Wage Subsidy Scheme (WSS)

Written by Author. Posted in Vanuatu Government Recommended Financial and Economic Stimulus – COVID 19

 

WAGE SUBSIDY SCHEME (WSS)

 The wage subsidy has been designed to provide income support to employees, to stabilise employment and to alleviate businesses cash flow issues.

Under this proposed scheme, the Government will pay eligible businesses 50% of the monthly wages of each VNPF-registered employee, up to VT 15,000.

Payments will be made based on actual VNPF contributions each month.

For the purposes of this scheme, eligible businesses are defined as businesses:

  • That have a valid business license for 2021, and
  • That were registered for VAT and submitted returns in 2019 and 2020, and
  • Are identified as ‘distressed’ by MFEM, based on a stress test indicating that turnover has decreased by more than 30% due to COVID-19
  • Are registered with VNPF and have been contributing to their employee’s VNPF

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 2020 against turnover experienced in December 2019, or turnover experienced in the 4th quarter of 2020 against turnover experienced in the 4th quarter of 2019).

To calculate this, we take the 2019 value, minus the 2020 value, and divide this number by the 2019 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.

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. There will not be any need to submit receipts from VNPF.

GUIDELINES FOR COMPLETION OF THE FORM

2021 WAGE SUBSIDY SCHEME  APPLICATION FORM Instructions

Please read the following instructions carefully before downloading or filling the application form.                        

  • Under Section A, please provide your Government Vendor code if you already have one.
  • In Section A, please provide your TIN/CT number.
  • Please nominate a primary and an alternative contact person from within your organisation and provide their details in Sections B2 and B3 respectively.
  • In Section C, please provide the details of only one business bank account for payments. No payment will be made to any personal bank account, through cash or cheque. If your business only uses a personal account to transact, please open a business bank account and provide the details on this form where asked.

          All sections of this form are compulsory and must be fully completed with true and correct information.

  • Please fill in the requested information into the designated cells only. Do not enter data into any other cells.
  • You can submit your application in one of the following ways:

          I.  As a Microsoft Excel spreadsheet along with scanned supporting documents to This email address is being protected from spambots. You need JavaScript enabled to view it.             

          Ii. In person at the office of your representative, e.g. VCCI           

          Iii. As a paper copy given to MFEM Provincial Office, Provincial Government or Area Administrator.             

  • Please direct any queries you may have to:

                      Department of Finance & Treasury       

                       Phone: 26049

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

                       Vanuatu Chamber of Commerce & Industry      

                       Phone: 27543

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

ELIGIBILITY CRITERIA (Wage Subsidy Scheme)

Businesses that are eligible for the Wage Subsidy Scheme are those that:
1. Have a valid license (and provide a true copy of this license) issued by a licensing authority as per the Business License Act No. 19 of 1998 for 2021.
2. Are registered with VNPF and have been contributing to their employee’s VNPF.
3. Were registered for VAT and submitted returns in 2019 and 2020.
4. Are identified as ‘distressed’ based on a stress test indicating a reduction in turnover (according to VAT submissions) 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.
5. Do not benefit from the SBG scheme (businesses that are eligible for both schemes may choose which scheme to apply for).

Application process for Wage Subsidy Scheme

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 business licence numbers of the 422 eligible firms will be provided to the Vanuatu Chamber of Commerce and Industry and available on the DoFT website.

If you are unsure whether you are eligible and would like confirmation before you apply, please check the DOFT website or contact VCCI by telephone on 27543 or by email at This email address is being protected from spambots. You need JavaScript enabled to view it..

To maintain confidentiality only Tax Identification Number (TIN) (and not names) of eligible businesses will be provided to VCCI and listed on DOFT Website accessible here.

Please download an application form in the format of an Excel spreadsheet here (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 licence and your VNPF Employer Certificate.

Submit the Excel spreadsheet and copies of your business licence 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.

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

Download application form here.

16 Jul2021

Small Business Grant Scheme

Written by Author. Posted in Vanuatu Government Recommended Financial and Economic Stimulus – COVID 19

Small Business Grant  Scheme

The small business grant has been designed to alleviate cash flow issues and/or stimulate investment for small businesses, supporting incomes for small business owners and their families.

The scheme aims to support:

  • established businesses (first registered in 2020 or prior), including those which may have closed due to economic hardship
  • new business operators that have established their business after the COVID-19 crisis

Under this scheme, the Government will issue a grant of VT15,000 per month over 8 months (from May to December 2021) 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 between 1 January 2020 and 30 April 2021; 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.

 

Please read the following instructions carefully before downloading or completing the application form.

2021 SMALL BUSINESS GRANT GUIDELINES FOR COMPLETION OF THE  APPLICATION FORM

Instructions

  1. Under Section A, please provide your Government Vendor code if you have one.
  2. In Section A, please provide your TIN/CT number if you have one.            
  3. Please nominate a primary and an alternate contact person that you trust and provide their deta4.      
  4. In Section C, please provide the details of the bank account you wish for the grant to be deposited into. No cash or cheque payments will be made so please open a bank account if you do not already have one before filling out the form.
  5. All sections of this form are compulsory and must be fully completed with true and correct information.                                                             
  6. Please fill in the requested information into the designated cells only. Do not enter data into any other cells.                                                               
  7. Before you submit this application form, save it as the original file name with your business name at the end. For example, the file for the company "ABC Limited" should be saved as "Form SBG-21-01 - ABC Limited".
  8. Please be advised that 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 (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 the Public Land Transport Authority, go to the 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 5039377 for 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. You can call her on 7741059 for more details.

No access to a computer with Microsoft Excel and located outside of Port Vila:

  • You can obtain a paper version of the application forms from a provincial office of the Department of Finance and Treasury (in provincial capitals) or your Area Administrator (in rural areas). You should fill in this form and submit it with a copy of your business licence and a letter from your bank confirming that your business bank account details are correct and that the bank account is active.
  1. 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 (able to get to any provincial capital)  Public Land Transport Authority in any provincial capital  

Mobile phone: 7693381 or 5039377
 LThis email address is being protected from spambots. You need JavaScript enabled to view it.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  Nadia Kanegai  This email address is being protected from spambots. You need JavaScript enabled to view it.
 Any applicants in Sola, Torba Province MFEM FSB Torba, Davis Pakoa Kalangis 38501  This email address is being protected from spambots. You need JavaScript enabled to view it.
 Any applicants in Saratamata, Penama MFEM FSB Penama, Pauline Taribiti  38001  This email address is being protected from spambots. You need JavaScript enabled to view it.
Any applicants in Luganville, Sanma  MFEM FSB Sanma, Lolin Rihu 37039  This email address is being protected from spambots. You need JavaScript enabled to view it.
 Any applicants in Lakatoro, Malampa MFEM FSB 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 MFEM FSB 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/Secretary List below: Area Council list

  

ELIGIBILITY CRITERIA (Small Business Grant)

Businesses that are eligible for the Small Business Grant are those that:                                                                                                           

  1. Have a valid license (as defined below) for one or more of the following periods:                                                                                                                   

                        a)         2020; or                                                                                                                      

                        b)         2021 (registered prior to 30 April 2021).                                                                                                                    

  1. 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:                                                                    

                        a)         Valid Business License Certificate with a certified stamp and signature from relevant authority.                                                                                                             

                        b)         Liquor License Certificate with a certified stamp and signature from relevant authority.                                                                                                           

                        c)         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.                                                                                                                           

     3. Have one or more of the following:                                                                                                                        

                        a)         Declared an actual turnover for the previous year of less than VT 4 million in their business license application; or                                          

                        b)         Declared less than VT4 million turnover in their 2020 VAT returns; or                                                                                                              

                        c)        Been issued with a business license issued by a provincial authority that does not include a record of declared actual turnover from the previous year.

     4. Submit an application form, in a format provided by MFEM, ensuring all fields required are provided, including:

                        a)         Contact details for the business owner.         

                        b)       Bank account details of the business owner (or a written letter from the owner to confirm alternative payment arrangements) and a declaration that the bank account is active.

             c)         A declaration that all information provided is accurate.                                                                                                                    

     5. Submit an application form as defined above before the closing date of 30 September 2021.                                                                                                                          

     6. 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

16 Jul2021

Stimulus Package

Written by Ernest Kaltavara. Posted in Vanuatu Government Recommended Financial and Economic Stimulus – COVID 19

VANUATU GOVERNMENT FINANCIAL AND ECONOMIC STIMULUS SECOND ROLLOUT – COVID-19

Background information about the Stimulus Package

SUPPORTING WORKERS, BUSINESSES  AND COMMUNITIES

The first Economic Stimulus Policy was developed in March 2020, just after the borders were closed and as the effect of the COVID-19 pandemic was taking hold of Vanuatu’s economy, with the aim of supporting businesses in, and suppliers of, the tourism industry, for five months.

Unfortunately, the economic situation caused by COVID-19 has continued, with more difficult access to export markets, a fall in foreign investment, a large reduction in tourism earning, and lower employment, meaning less money flowing around the economy.

These negative impacts brought by the reduction in terms of trade, employment, turnover, and tourists build on top of each other, with each one affecting business confidence, creating leakages to the economy, and steadily making the situation worse.

VNPF data shows that the number of contributing members has fallen since March 2020, suggesting that employment has dropped.

Data collected by Department of Customs and Inland Revenue (DCIR) shows that businesses’ turnover has also dropped following the COVID-19 border closures, with VAT return data indicating that total turnover was 16.6% less in April to December 2020 compared with the same period in 2019.

Some businesses faced more hardships in 2020 than others, with 27.0% of businesses experiencing a drop in turnover of more than 30%.

Small businesses have been particularly affected. Based on available data, half of small businesses (66 out of 123) that were VAT registered (i.e. those that paid VAT in 2019 and 2020 despite being below the VT 4 million turnover threshold for compulsory VAT registration) contracted by at least 30%.

Given the ongoing economic situation, the Vanuatu Chamber of Commerce and Industry (VCCI) reports that the main issue facing businesses is the challenges they faced in cash flow to sustain business operations.

Ministry of Finance and Economic Management  Gross Domestic Product (GDP)  estimates for 2020 also show a decline in production, with a decline of 2.6% in real GDP.

Despite this, RBV reporting indicates significant excess liquidity in the banking system. This means that banks have available loanable funds in excess of their required reserves, which they are not lending out as credit (loans).

The Government has already put in motion a range of programs to help stimulate the economy, ranging from infrastructure projects to agricultural subsidy schemes.

Together, these programs are designed to help a wide range of actors across the economy, including households, the tourism industry, agriculture, businesses in commerce/trade, and cross-sector beneficiaries.

While these targeted programs are expected to contribute to economic stimulus, there may still be businesses and workers in distress that are not reached by these programs.

Based on this recognition the government has made a Council of Ministers (COM)  decision number 120, on May 18, 2021 to approve a second Policy Stimulus.

Bislama version

Objectives of the Second Policy Stimulus

The purpose of the second policy stimulus is to address:

  • cash flow issues faced by distressed businesses
  • decline in both employment and actual take-home wages (leading to economic hardships faced by workers and their families)
  • decline in production. 

The government has approved three Programs under the Second Stimulus package:

  • Small Business Grant
  • Wage Subsidy Scheme
  • Special Covid-19 Banking Facility 

This facility is aimed at supporting businesses to stabilise their balance sheets while they remain in business, which has the potential to run for as long as five years.

Total allocations to the three schemes are as follows:

Small Business Grant Scheme : 700,000,000

Wage Subsidy Scheme: 560,000,000

Special Covid-19 Banking Facility: 900,000,000

The Ministry of Finance and Economic Management will be accepting Applications from 19th July 2021 until 30th September 2021.

The Department of Finance and Treasury will be sending out weekly reports to the relevant stakeholders on the status of each application.

Business can check the status of their applications with VCCI, Land Transport Authority, Handicraft Association and DoFT Website

Bank Accounts that are submitted MUST be Active – Bring your bank cards with account details with you when you go to each of the stakeholders to fill your forms.

All queries should be directed to the stakeholders – if unsure the stakeholders will revert your query to the Department of Finance

For Small Business Grant (SBG) Scheme enquiries email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 26049.

For  Wage Subsidy Scheme (WSS)  enquiries can be forwarded to This email address is being protected from spambots. You need JavaScript enabled to view it.   Or call  26049.

Outstanding Small and Medium Enterprise Grant Applications from 2020

There still exists a substantial amount of Small and Medium Enterprises (SMEs) Grant applications that are yet to receive their payments.


Pivotal to the verification process of applications are business license data from all licencing authorities (DCIR, the 6 Provincial Governments and the Municipalities). Assistance was sought from the DCIR, the Department of Local Authorities to acquire data for all business licenses issued between the 1st of January 2019 and the 31st of March 2020, consistent with the eligibility criteria set for the SME grants.


Despite lengthy dialogues with all authorities concerned, MFEM discovered that provincial authorities have failed to maintain proper and accurate records of business licenses paid in their jurisdictions. The data requested from all authorities were submitted very late, with many discrepancies. One particular province never submitted any data at all. Many business licenses received as part of applications were either inexistent in their records provided, or existed as duplicates with at least one other entity.


Given the above findings, MFEM decided to put on hold all payments to applicants that were identified to have issues with their business licenses and to further consult the authorities to provide the correct information. Unfortunately MFEM’s efforts to have the licencing authorities fix these issues was unsuccessful. Provinces claim such an exercise would be too tedious, if not impossible.


Despite the issues with provincial records, most outstanding SME grant applicants have provided a copy of a business license certificate along with their application forms.


To address this backlog prior to implementing the Vanuatu Second Policy Stimulus, MFEM proposes that all SME Grant applications, where a license from a provincial authority was provided as supporting documentation, be eligible to receive payment as long as it meets the following criteria:

               • The license was issued between 01/01/19 and 31/03/20.
               • The license bears the:


               i. Provincial Government’s stamp and/or letterhead
               ii. licensee’s name
               iii. signature and/or name of the representative officer of the licensing authority
               iv. Business license number must be clearly displayed

 

08 Apr2020

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!!