FACTBOX-Global economic policy response to the coronavirus crisis

LONDON, July 16 (Reuters) - Governments and central banks around the world have rolled out unprecedented fiscal and monetary support for economies that are reeling from the coronavirus pandemic. The following is a summary of the main fiscal and monetary policy announcements made by policymakers from the Group of 20 major world economies and others. For a separate FACTBOX outlining the response from global central banks since the crisis began, see: Major G7 economies with euro zone Country/Region Fiscal policy Monetary policy / market operations United States March 27 - $2.3 trillion aid March 3 and March 15 - Fed cuts interest package including: $500 billion rates in two emergency meetings on March 3 to help hard-hit industries; $350 (50 basis points) and March 15 (100 bps), billion for small-business loans; taking the federal funds rate to 0-0.25%. $250 billion for expanded Cuts the discount window rate by 150 bps. unemployment aid; at least $100 billion for hospitals and related health systems. March 18 - Fed rolls out third emergency credit program in two days; aimed to April 23 - House of ensure liquidity in money market mutual Representatives approves $484 funds. billion coronavirus relief bill, funding small businesses and March 23 - Fed promises unlimited, hospitals. open-ended QE, including purchases of corporate and municipal bonds. May 15 - House of Representatives passes $3 trillion relief March 31 - Fed broadens access to dollars package. with repo agreements for foreign central banks. April 9 - Fed rolls out $2.3 trillion to backstop "Main Street" local governments and small and mid-sized businesses. April 27 - Fed broadens help for local governments, offering to buy bonds of up to three years' duration from counties with as few as 500,000 residents and cities with as few as 250,000 residents. United Kingdom March 11 - Introduces 30 billion- March 11 and 19 - Bank of England cuts pound stimulus plan. interest rates in two emergency meetings on March 11 (50 bps) and March 19 (15 bps), March 17 - Says will launch a 330 taking the rate to a record low of 0.10%; billion-pound lifeline of loan announces 200 billion pounds of bond guarantees to businesses. purchases. Introduces new program for cheap credit and reduces capital buffer. March 20 - Offers to pay 80% of wage bills if staff put on leave, March 17 - BoE corporate financing facility up to a maximum of 2,500 pounds a will buy commercial paper with a maturity month. Businesses also allowed to of up to 12 months from businesses that had temporarily hold onto 30 billion a pre-crisis investment-grade credit rating pounds in VAT. or similar. March 27 - Pledges public money April 2 - BoE says will double the size of to cover national insurance and its corporate bond purchase program to at pension contributions for least 20 billion pounds. companies that temporarily ask employees not to work. June 18 - Increases bond-buying program by 100 billion pounds. April 17 - Furlough scheme extended by a month until end-June. May 12 - Furlough scheme extended by a further four months until end-October. May 13 - Says will temporarily guarantee business-to-business transactions until December for companies struggling to pay trade credit insurance. May 19 - Quadruples size of loan large businesses can borrow to 200 million pounds. May 22 - Extends mortgage payment holiday scheme for homeowners for another three months. July 8 - Announces an additional 30 billion pounds of spending, funneling money to employers, homebuyers and hospitality firms; gives tax break to housing market. Japan March 10 - Announces 430.8 March 16 - Bank of Japan ramps up purchases billion yen of extra spending. of exchange-traded funds (ETFs) and other risky assets, including corporate bonds. Is also creating a new loan program to April 7 - Approves economic extend one-year, zero-rate loans to stimulus package equal to 20% of financial institutions. Planned annual economic output. Package totals increase in the Bank's government bond 108 trillion yen and includes holdings held at 80 trillion yen. cash payouts worth more than 6 Introduces new lending facility worth 8 trillion yen to households and trillion yen. small and midsize firms. April 27 - BOJ pledges to buy unlimited amounts of bonds; will boost by three-fold April 16 - PM Abe says to the maximum amount of corporate bonds and consider making cash payouts of commercial debt it buys to 20 trillion yen. 100,000 yen to everyone. FACTBOX on key steps: April 20 - Says is boosting May 22 - BOJ launches its own version of economic stimulus package by 8% the U.S. Fed's "Main Street" lending to $1.1 trillion. program to channel nearly $280 billion to small businesses. Extends to March 2021 May 27 - Cabinet approves fresh emergency relief announced in March and $1.1 trillion stimulus package. April. Extends the term of loans for a FACTBOX on key lending scheme to six months from three spending: months. May 26 - BOJ offers to pump 1.7 trillion yen into the economy under its lending scheme. Canada March 18 - Says will provide C$55 March 12 - Bank of Canada announces billion in additional aid to temporary expansion to the list of eligible businesses and households through securities for its term repo operations. tax deferrals; C$27 billion aid package for workers and low-income households. March 26 - Canadian Mortgage and Housing Corp bolsters the insured mortgage purchase program to C$150 billion from previously March 30 - Says will cover up to announced C$50 billion. 75% of the wages of people working for small and March 27, March 13 and March 4 - BoC cuts medium-sized enterprises. rates in three emergency meetings on March 4 (50bps), March 13 (50 bps) and March 27 (50 bps), taking the overnight interest May 15 - Extends emergency wage rate to 0.25%. subsidy program until end-August. March 27 - BoC says will buy Government of Canada securities in the secondary market. It will begin with purchases of C$5 billion per week. Euro zone March 23 - EU finance ministers March 12 - ECB cuts interest rate on formally endorse suspension of Targeted Long-Term Refinancing Operations limits on EU government (TLTROs) by 25 bps to -0.75%. Adds 120 borrowing. billion euros to existing asset-purchase Considering allowing program of 20 billion euros a month. precautionary credit line worth 2% of national GDP from ESM bailout fund. March 19 - ECB adds another 750 billion euros in QE, taking the total to about 1.1 trillion euros this year, adds Greek April 9 - EU finance ministers government debt to portfolio of bonds it agree on half a trillion euros' would purchase. worth of support, bringing EU's total fiscal response to 3.2 March 26 - ECB eliminates cap on how many trillion euros. bonds it can buy from any single euro zone country. April 23 - EU leaders agree to build a trillion euro emergency April 30 - ECB lowers interest rates on fund. long-term loans for banks (TLTROs) to as little as -1.0%, launches a similar new May 18 - France and Germany loan scheme called Pandemic Emergency proposes a 500 billion euro Longer-Term Refinancing Operations or Recovery Fund offering grants to PELTROs. European Union regions and sectors hardest hit. June 4 - ECB increases the size of its May 27 - European Commission Pandemic Emergency Purchase Programme to proposes a 1.1 trillion euro 1.35 trillion euros from 750 billion euros budget for 2021-27 and an and extends it until June 2021 at the attached recovery fund worth 750 earliest, pledges to reinvest proceeds billion euros - 500 billion of until at least end-2022. that will be made available as grants and the rest as repayable loans. Germany FISCAL STIMULUS: March 23 - Package worth up to 750 billion euros including: 100 billion euros for an economic stability fund that can take direct equity stakes in companies; 100 billion euros in credit to public-sector development bank KfW for loans to struggling businesses; stability fund will offer 400 billion euros in loan guarantees to secure corporate debt at risk of defaulting. June 3 - Ruling coalition agrees to a 130 billion-euro stimulus package. France FISCAL STIMULUS: March 16 - Guarantees up to 300 billion euros of corporate borrowing from commercial banks. March 17 - 45 billion euros of crisis measures to help companies and workers. May 14 - Announces measures worth 18 billion euros to support tourism. Italy FISCAL STIMULUS: March 16 - Emergency decree worth 25 billion euros, suspending loan and mortgage repayments for companies and families and increasing funds to help firms pay workers temporarily laid off. April 6 - New emergency decree to offer more than 400 billion euros worth of liquidity and bank loans to companies. May 14 - Approves a 55 billion euro stimulus package. Spain FISCAL STIMULUS: March 17 - 200 billion euro package; half in state-backed credit guarantees for companies and the rest including loans and aid for vulnerable people. March 31 - 700 million euro aid package, including a measure to suspend evictions of vulnerable households for six months after the state of emergency is lifted. Other major G20 economies China March 27 - Politburo says will Feb 20 - People's Bank of China cuts step up macroeconomic policy one-year Loan Prime Rate by 10 bps to changes and pursue more proactive 4.05%, after various liquidity injections fiscal policy. Calls for and other policy easing earlier in the expanding the budget deficit, year. issuing more local and national bonds, guiding interest rates Feb 25 - PBOC offers easier funding for lower, delaying loan repayments, small and medium-sized businesses, reducing supply-chain bottlenecks increasing yuan re-lending and re-discount and boosting quotas by 500 billion yuan; increases consumption. policy banks' loan quota by 350 billion yuan. Earlier in the year, Beijing introduced various small measures March 13 - PBOC cuts amount of cash banks and fiscal expenditure such as must hold as reserves for the second time tax breaks, reduced power charges this year, releasing 550 billion yuan. and fee reductions. March 30 - PBOC lowers the seven-day reverse repo rate to 2.20% from 2.40%. . April 3 - PBOC says will cut reserve requirement ratio (RRR) for small banks by 100 bps, releasing around 400 billion yuan. It will be implemented in two phases - first 50 bps cut will be effective April 15 and a second 50 bps cut will be effective May 15. April 15 - PBOC says was lowering one-year medium-term lending facility (MLF) loans to financial institutions to 2.95%, down 20 bps from 3.15% previously. April 20 - PBOC cuts 1-year loan prime rate by 20 bps to 3.85%, 5-year was cut by 10 bps to 4.65% from 4.75%. April 24 - PBOC cuts one-year interest rate on its targeted medium-term lending facility (TMLF) by 20 bps to 2.95% from 3.15%. May 10 - PBOC says will step up counter-cyclical adjustments and make monetary policy more flexible. June 18 - Cuts rate on 14-day reverse repurchase agreements to 2.35% from 2.55%. Russia April 1 - Earmarks nearly 1.4 April 24 - Central bank cuts key interest trillion roubles to fight the rate by 50 bps to 5.50%. economic fallout. June 19 - Cuts key interest rate by 100 bps April 16 - Says is set to spend to 4.50%. more than 2 trillion roubles. India March 26 - Federal government March 27 - Reserve Bank of India cuts announces 1.7 trillion-rupee benchmark repo rate by 75 bps to 4.40%. stimulus plan providing direct cash transfers and food security measures. April 17 - RBI cuts reverse repo rate by 25 bps to 3.75%. May 12 - Announces a 20 trillion- rupee economic support package April 27 - RBI opens a special liquidity including: 35 billion rupees on facility of up to 500 billion rupees to food for nearly 80 million help tide over mutual funds facing a severe migrant workers over the next two liquidity strain. months; 3 trillion rupees to small businesses; 700 billion May 22 - RBI cuts benchmark repo rate by 40 rupees to support stressed bps to 4.00%. Reverse repo rate was reduced businesses; 900 billion rupees by 40 bps to 3.35%. for power distribution companies; 1 trillion rupees to set up agriculture infrastructure fund. Australia March 22 - A$66.4 billion in March 19 and March 3 - Reserve Bank of assistance for companies and Australia cuts rates in two steps (25 bps welfare payments; A$17.6 billion on March 3, 25 bps on March 19), taking the in subsidies for apprentices, cash rate to 0.25%; introduces first use of small businesses, pensioners and quantitative easing, setting a target of others; A$130 billion to around 0.25% for bond yields. subsidize wages of an estimated 6 million people. [nL4N2BC1 March 19 - A$90 billion funding facility to EE] banks at fixed rate of 0.25%; A$15 billion purchase program of residential mortgage-backed and other asset-backed securities; A$715 million support program for airlines. Indonesia March 31 - Announces $24.9 Feb. 20 - Central bank cuts key policy billion in spending, including a interest rate by 25 bps to 4.75%. 3 percentage-point reduction in the corporate tax rate to 22%. Other measures were expanding March 19 - Bank Indonesia cuts seven-day social welfare to benefit up to reverse repurchase rate by 25 bps to 4.50%. 10 million households, food assistance and electricity tariff discounts and waivers. April 14 - Bank Indonesia cuts reserve requirement ratio for banks by 200 bps and 50 bps for Islamic banks, tweaks other May 18 - Says will revise its liquidity rules, effective May 1. 2020 budget for a second time this year to accommodate a $43 billion stimulus package. May 6 - Central bank chief pledges to Programme includes tax breaks, provide as much liquidity as needed. subsidies for interest payments for small firms, liquidity support for the banking industry June 18 - Cuts the 7-day reverse repurchase to restructure loans, bailouts rate by 25 bps to 4.25%. for state firms and other measures. It is an expansion of July 16 - Cuts the 7-day reverse repurchase the $25 billion spending response rate by 25 bps to 4.00%. announced in late March. July 6 - Introduces a near $40 billion financing scheme for its fiscal deficit. Brazil March 16 - 150 billion reais March 18 - Cuts interest rates by 50 bps to budget boost to support most 3.75% and eases capital requirements for vulnerable population and jobs; financial institutions. presidential decree declaring [nL1N2B national emergency allowing the G0DD] government to waive fiscal targets and free up budget March 23 - 1.2 trillion reais central bank resources. program to inject liquidity through purchases of bank loan portfolios; new April 1 - Launches a 51 billion- rules allowing banks to offer firms and reis program that will allow households increased loans and better companies to reduce workers' terms; central bank intervention in FX salaries and hours, or markets and repurchases of temporarily suspend contracts, in dollar-denominated sovereign bonds. order to preserve jobs. May 6 - Cuts benchmark Selic rate by 75 bps to a record-low 3.00%. June 17 - Cuts benchmark interest rate by 75 basis points to 2.25%. South Korea March 17 - Parliament approves a March 16 - Bank of Korea cuts interest supplementary budget of 11.7 rates by 50 bps to 0.75%. trillion won. April 16 - Central bank sets up plan for March 19 - Pledges 50 trillion brokerages to borrow funds against won in emergency financing for collateral that includes AA- rated small businesses and other corporate bonds. stimulus measures. May 13 - Central bank says will raise the March 24 - Doubles its planned ceiling for its special loans program by economic-rescue package to 100 5 trillion won to 35 trillion won to extend trillion won. Package includes support to small businesses. 29.1 trillion won in loans to small and medium-sized companies, May 28 - Bank of Korea cuts interest rates while another 20 trillion won by 25 bps to a record low of 0.50%. will be used to buy corporate bonds and commercial paper of companies facing a credit crunch. March 30 - Government will make emergency cash payments to all but the richest families, totalling 9.1 trillion won, drawing up a second supplementary budget in April. Initial supplementary budget worth 11.7 trillion won; 50 trillion won in emergency financing for small businesses; key capital flow rules temporarily further loosened to encourage local financial institutions to supply more dollars. [nL4N2BC0 M1] April 8 - Says will make an additional 36 trillion won of cheap loans available to exporters. Also fresh measures worth 17.7 trillion won would be rolled out to boost consumption and support domestic demand. April 30 - Parliament approves government's second supplementary budget at a revised 12.2 trillion won, bringing the government's total spending to 531.1 trillion won for this year. Will issue an additional 3.4 trillion won of deficit-covering bonds. South Africa April 6 - Says will set aside 1.2 March 19 - South African Reserve Bank cuts billion rand to help small-scale main lending rate by 100 bps to 5.25%. farmers to support food production. March 25 - SARB announces a program to buy bonds on secondary market. April 14 - SARB reduces main lending rate by 100 bps to 4.25%. May 21 - SARB cuts main lending rate by 50 bps to 3.75%. Mexico April 5 - Introduces plans to March 20 - Central bank cuts rates 50 bps lift the economy, help the poor to 6.50%. and create jobs. April 8 - Financial authorities agree to April 17 - Says will inject apply looser liquidity rules on banks. around $2.5 billion into the economy in May. April 21 - Central bank announces around April 22 - Will increase spending $31 billion in support for the financial on social programs and system and cut borrowing costs. infrastructure projects by $25.6 billion. May 14 - Central bank cuts key interest rate by 50 bps to 5.50%. June 25 - Cuts key interest rate by 50 basis points to 5.00%. Argentina March 23 - Says will make a March 19 - Central bank says will lower one-time payment of 10,000 pesos reserve requirements for banks that extend in April to low-income or special credit lines to small and informal workers unable to pay medium-sized enterprises at a maximum their bills. annual interest rate of 24%. April 20 - Says will widen an economic aid package to 850 billion pesos, equivalent to around 2.9% of the country's gross domestic product. (Compiled by Reuters Polls; editing by Lisa Shumaker, Nick Macfie, Andrew Heavens, Kirsten Donovan and Larry King)

07/16/2020 14:16

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