Decision No. 016: Vanuatu Government Recommended Financial and Economic Stimulus - Covid-19

1. COM agrees the economic stimulus measures as described in Table 1 in the Financial Implications and Annex B, both of revenue and expenditure;

2. COM agrees to continue the Citizenship Program, subject to further review, in light of COVID-19 and other economic factors;

3. COM agrees to present a supplementary appropriation bill to Parliament as a matter of urgency requesting an additional 2% of the 2020 appropriation, amounting to VT 1,143 million, to fund the economic stimulus package. COM notes that this must be done before the end of April to ensure the government has sufficient cash flow to implement stimulus measures and that supplementary appropriations legally cannot be passed beyond the end of June 2020. SPR 9053, Port Vila, Vanuatu-Telephone (678) 22413 -Facsimile: (678) 26301 - E-mail: erory@vanuatu.gov.vu

4. COM agrees to avoid taking on any further external loans but to issue domestic bonds in the order of VT 3.9 billion to help finance the stimulus response;

5. COM agrees to engage lenders to request deferral of payments of principal and interest on external loans until 2021;

6. COM agrees to authorise the amounts to be drawn down from the Public Fund under the Financial and State of Emergency provisions of section 34 C of the PFEM Act amounting to VT 857 million (1.5% for State of Emergency);

7. COM agrees to implement a coordinated communication strategy to ensure the above-mentioned decisions are well understood (The Ministry of Finance & Economic Management to oversee the success of its implementation);

8. COM agrees to authorise the Director General of Finance & Economic Management to work with SLO to enact necessary law to give effect to these decisions;

9. COM agrees to direct NDMO to consult with the Department of Customs regarding the clearance of imported health equipment and facilities that are directly related to COVID -19;

10. COM agrees to note that the Minister of Finance and Economic Management has temporarily suspended requirements for low value procurements in order to accelerate spending by agencies. This suspension may be extended and also applied to high-value procurement if necessary.

11. COM instruct the Ministry of Infrastructure & Public Utilities to accelerate implementation of the total VT 5.0 billion being for infrastructure development fund.

12. COM agrees to cancel the following taxes and charges for 2020 (No refund if already paid). i. Road Tax ii. Work Permit iii. Business licence (other than commercial banks) iv. Residence permit v. Rent Tax vi. Tuition fee exemptions capped to a maximum level of VT42,000 per annum per student for all schools for the whole year 2020; SPR 9053, Port Vila, Vanuatu- Telephone (678) 22413 - Facsimile: (678) 26301 - E-mail: erory@vanuatu.gov.vu

13. COM agrees for the Government extend the copra subsidy scheme to the following commodities including Kava, coffee and cocoa.

14. COM has considered and agreed on directions N°5 to be issued by Director of NDMO under the State of Emergency (SOE) regulation Order N° 35 of 2020. Thank you, Esther Rory Acting Secretary CC: Hon. Prime Minister Hon. DPM All Hon. Ministers All DGs All 1st PA Attorney General Chairman of the Public Service Commission Acting Director, Finance Treasury Unit D5PPAC PRO SPR 9053, Port Vila, Vanuatu-Telephone (678) 22413 -Facsimile: (678) 26301 - E-mail: erory@vanuatu.gov.vu