May 13, 2020 / 11:57 AM / 2 days ago

FACTBOX-Global economic policy response to the coronavirus crisis

    LONDON, June 1 (Reuters) - Governments and central banks around the world have unleashed
unprecedented amounts of 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 - The Fed cuts
                  package including: $500 billion    interest rates in two emergency meetings on
                  to help hard-hit industries; $350  March 3 (50 basis points) and March 15 (100
                  billion for small-business loans;  bps), taking the federal funds rate to
                  $250 billion for expanded          0-0.25%. It also cut the discount window
                  unemployment aid; at least $100    rate by 150 bps.                         
                  billion for hospitals and related  
                  health systems.                    March 18 - The Fed rolls out its third
                                                     emergency credit programme in two days;
                  April 23 - The House of            this one aimed to ensure liquidity in money
                  Representatives approves a $484    market mutual funds.             
                  billion coronavirus relief bill,   
                  funding small businesses and       March 23 - The Fed promises unlimited,
                  hospitals and pushing the total    open-ended QE, including purchases of
                  spending response to the crisis    corporate and municipal bonds.             
                  to near $3 trillion.               
                                                     March 31 - The Fed broadens access to
                  May 15 - The House of              dollars with repo agreements for foreign
                  Representatives passes a $3        central banks.             
                  trillion relief package.           
                                                     April 9 - The Fed rolls out $2.3 trillion
                                                     to backstop "Main Street" local governments
                                                     and small and mid-sized businesses.
                                                                 
                                                     
                                                     April 27 - The Fed broadens its 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 - Britain unveils a 30    March 11 and 19 - The Bank of England cuts
                  billion pound stimulus plan.       interest rates in two emergency meetings on
                                                     March 11 (50 bps) and March 19 (15 bps),
                                                     taking the rate to a record low of 0.10%;
                  March 17 - Britain says it will    announced 200 billion pounds of bond
                  launch a 330 billion pound         purchases. The BoE introduced a new
                  lifeline of loan guarantees to     programme for cheap credit and reduced a
                  businesses.                        capital buffer to help banks lend.
                                                                              
                  March 20 - Offers to pay 80% of    
                  wage bills if staff put on leave,  March 17 - A BoE corporate financing
                  up to a maximum of 2,500 pounds a  facility will buy commercial paper with a
                  month. Businesses also allowed to  maturity of up to 12 months from businesses
                  temporarily hold onto 30 billion   that had a pre-crisis investment-grade
                  pounds in VAT.                     credit rating or similar.
                                                                             
                  March 27 - Britain says it will    
                  ramp up its bid to slow a surge    April 2 - The BoE says it will double the
                  in unemployment during the         size of its corporate bond purchase
                  coronavirus crisis by pledging     programme to at least 20 billion pounds.
                  public money to cover national                 
                  insurance and pension              
                  contributions for companies that   
                  temporarily ask employees not to   
                  work.                              
                                                     
                  April 17 - Furlough scheme         
                  extended by a month until the end  
                  of June.                           
                                                     
                  May 12 - Furlough scheme extended  
                  by a further four months until     
                  the end of October.                
                                                     
                  May 13 - Britain says it will      
                  temporarily guarantee              
                  business-to-business transactions  
                  until December for companies       
                  struggling to pay trade credit     
                  insurance.                         
                                                     
                  May 19 - Britain quadruples the    
                  size of the loan large businesses  
                  can borrow to 200 million pounds.  
                                                     
                                                     
                  May 22 - Britain extends its       
                  mortgage payment holiday scheme    
                  for homeowners for another three   
                  months.                            
 Japan            March 10 - The government          March 16 - The Bank of Japan eases monetary
                  announces 430.8 billion yen of     policy by ramping up purchases of
                  extra spending.                    exchange-traded funds (ETFs) and other
                                                     risky assets, including corporate bonds. It
                  April 7 - The government approves  is also creating a new loan programme to
                  an unprecedented economic          extend one-year, zero-rate loans to
                  stimulus package equal to 20% of   financial institutions. Planned annual
                  economic output. The package       increase in the Bank's government bond
                  totals 108 trillion yen and        holdings held at 80 trillion yen.
                  includes cash payouts worth more   Introduces new lending facility worth 8
                  than 6 trillion yen to households  trillion yen.             
                  and small and midsize firms.       
                                                     April 27 - BoJ pledges to buy unlimited
                                                     amounts of bonds; will boost by three-fold
                  April 16 - Japan PM Abe says       the maximum amount of corporate bonds and
                  government to consider making      commercial debt it buys to 20 trillion yen.
                  cash payouts of 100,000 yen to                  FACTBOX on key steps:
                  everyone.                                      
                                                     
                  April 20 - Japan's government      May 22 - The Bank of Japan launches its own
                  says it is boosting its economic   version of the U.S. Federal Reserve's "Main
                  stimulus package by 8% to $1.1     Street" lending programme to channel nearly
                  trillion.                          $280 billion to small businesses. Extends
                                                     to March 2021 emergency relief announced in
                  May 27 - Prime Minister Shinzo     March and April. Extends the term of loans
                  Abe's cabinet approves a fresh     for a lending scheme aimed at combating the
                  $1.1 trillion stimulus package.    coronavirus fallout to six months from
                               FACTBOX on key        three months.                          
                  spending:                          
                                                     May 26 - The BOJ offers to pump 1.7
                                                     trillion yen into the economy under its
                                                     lending scheme aimed at boosting loans to
                                                     companies.             
 Canada           March 18 - The government will     March 12 - The Bank of Canada announces
                  provide C$55 billion in            temporary expansion to the list of eligible
                  additional aid to businesses and   securities for its term repo operations.
                  households through tax deferrals;              
                  C$27 billion aid package for       
                  workers and low-income             March 26 - Canadian Mortgage and Housing
                  households.                        Corp bolsters the insured mortgage purchase
                                                     programme to C$150 billion from previously
                                                     announced C$50 billion.             
                  March 30 - Ottawa will cover up    
                  to 75% of the wages of people      March 27, March 13 and March 4 - The Bank
                  working for small and              of Canada cuts rates in three emergency
                  medium-sized enterprises.          meetings on March 4 (50bps), March 13 (50
                                                     bps) and March 27 (50 bps), taking the
                                                     overnight interest rate to 0.25%.
                  May 15 - Extends emergency wage                                        
                  subsidy program until the end of               
                  August.                            
                                                     March 27 - The Bank of Canada says it will
                                                     buy Government of Canada securities in the
                                                     secondary market. It will begin with
                                                     purchases of C$5 billion per week, across
                                                     the yield curve.             
 Euro zone        March 23 - European Union finance  March 12 - The ECB cuts the interest rate
                  ministers formally endorse the     on its Targeted Long-Term Refinancing
                  suspension of limits on EU         Operations (TLTROs) - cheap loans to banks
                  government borrowing.              - by 25 bps to -0.75%. It adds 120 billion
                               Considering allowing  euros to its existing asset-purchase
                  precautionary credit line worth    programme of 20 billion euros a month.
                  2% of national GDP from ESM                    
                  bailout fund.                      
                                                     March 19 - The ECB adds another 750 billion
                                                     euros in QE, taking the total to about 1.1
                  April 9 - European Union finance   trillion euros this year, and added Greek
                  ministers agree on half a          government debt to the portfolio of bonds
                  trillion euros' worth of support,  it would purchase.             
                  bringing the EU's total fiscal     
                  response to the epidemic to 3.2    March 26 - The ECB eliminates a cap on how
                  trillion euros.                    many bonds it can buy from any single euro
                                                     zone country.             
                  April 23 - European Union leaders  
                  agree to build a trillion euro     April 30 - The ECB lowers interest rates on
                  emergency fund to help recover     its long-term loans for banks (TLTROs) to
                  from the coronavirus pandemic.     as little as -1.0% and launches a similar
                                                     new loan scheme called Pandemic Emergency
                                                     Longer-Term Refinancing Operations or
                  May 18 - France and Germany        PELTROs.             
                  proposes a 500 billion euro        
                  Recovery Fund offering grants to   
                  European Union regions and         
                  sectors hardest hit.               
                  May 27 - The European Commission   
                  proposes a 1.1 trillion euro       
                  budget for 2021-27 and an          
                  attached recovery fund worth 750   
                  billion euros - 500 billion of     
                  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.
                                          
 France           FISCAL STIMULUS:
                  March 16 - Guaranteed 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 - France announced measures worth 18 billion euros to support its
                  tourism sector.             
 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 approved that will offer more than 400 billion
                  euros worth of liquidity and bank loans to companies.             
                  
                  May 14 - The government has approved a 55 billion euro stimulus package.
                              
 Spain            FISCAL STIMULUS:
                  March 17 - A 200 billion euro package; half in state-backed credit guarantees
                  for companies and the rest including loans and aid for vulnerable people.
                              
                  
                  March 31 - The government approves a 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 - The Communist Party's   Feb 20 - The People's Bank of China cuts
                  Politburo says it will step up     its one-year Loan Prime Rate by 10 bps to
                  macroeconomic policy changes and   4.05%, after various liquidity injections
                  pursue more proactive fiscal       and other policy easing earlier in the
                  policy. It calls for expanding     year.             
                  the budget deficit, issuing more   
                  local and national bonds, guiding  Feb 25 - China offers easier funding for
                  interest rates lower, delaying     small and medium-sized businesses,
                  loan repayments, reducing          increasing yuan re-lending and re-discount
                  supply-chain bottlenecks and       quotas by 500 billion yuan; China also
                  boosting consumption.              increased policy banks' loan quota by 350
                                                     billion yuan to make loans targeting these
                  Earlier in the year, Beijing       businesses             
                  introduced various small measures  
                  and fiscal expenditure such as     March 13 - The PBOC cuts the amount of cash
                  tax breaks, reduced power charges  banks must hold as reserves for the second
                  and fee reductions.                time this year, releasing 550 billion yuan.
                                                                 
                                                     
                                                     March 30 - The PBOC lowers the seven-day
                                                     reverse repo rate to 2.20% from 2.40%, the
                                                     largest cut in nearly five years.
                                                                 .
                                                     
                                                     April 3 - The PBOC says it will cut the
                                                     reserve requirement ratio (RRR) for small
                                                     banks by 100 bps, releasing around 400
                                                     billion yuan. It will be implemented in two
                                                     phases - the first 50 bps cut will be
                                                     effective April 15 and a second 50 bps cut
                                                     will be effective May 15.                 
                                                     
                                                     April 15 - The PBOC says it was lowering
                                                     the one-year medium-term lending facility
                                                     (MLF) loans to financial institutions to
                                                     2.95%, the lowest since the liquidity tool
                                                     was introduced in September 2014, down 20
                                                     bps from 3.15% previously.             
                                                     
                                                     April 20 - The PBOC cuts the 1-year loan
                                                     prime rate by 20 bps to 3.85%, while the
                                                     5-year was cut by 10 bps to 4.65% from
                                                     4.75%.             
                                                     
                                                     April 24 - Cuts the one-year interest rate
                                                     on its targeted medium-term lending
                                                     facility (TMLF) by 20 bps to 2.95% from
                                                     3.15%.             
                                                     
                                                     May 10 - The PBOC says it will step up
                                                     counter-cyclical adjustments and make
                                                     monetary policy more flexible.            
 Russia           April 1 - Russia earmarks nearly   April 24 - Russia's central bank cuts its
                  1.4 trillion roubles to fight the  key interest rate by 50 bps to 5.50%.
                  spread of the coronavirus and its              
                  economic fallout.                  
                                                     
                  April 16 - Economy minister Maxim  
                  Reshetnikov says Russia is set to  
                  spend more than 2 trillion         
                  roubles to counter the effects of  
                  the pandemic.                      
 India            March 26 - The federal government  March 27 - The Reserve Bank of India
                  announces a 1.7 trillion rupee     slashes its benchmark repo rate by 75 bps
                  stimulus plan providing direct     to 4.40%.                         
                  cash transfers and food security   
                  measures.                          April 17 - The RBI cuts its reverse repo
                                                     rate by 25 bps to 3.75%.             
                  May 12 - Prime Minister Narendra   
                  Modi announces a 20 trillion       April 27 - RBI opens a special liquidity
                  rupee economic support package     facility of up to 500 billion rupees to
                  including: 35 billion rupees on    help tide over mutual funds facing a severe
                  food for nearly 80 million         liquidity strain.                 
                  migrant workers over the next two  
                  months; 3 trillion rupees to       May 22 - The RBI cuts its benchmark repo
                  small businesses; 700 billion      rate by 40 bps to 4.00%. The reverse repo
                  rupees to support stressed         rate was reduced by 40 bps to 3.35%.
                  businesses; 900 billion rupees                 
                  for power distribution companies;  
                  one trillion rupees to set up for  
                  the agriculture infrastructure     
                  fund.                              
                                                     
 Australia        March 22 - A$66.4 billion in       March 19 and March 3 - The Reserve Bank of
                  assistance for companies and       Australia cuts rates in two steps (25 bps
                  additional welfare payments;       on March 3, 25 bps on March 19), taking the
                  A$17.6 billion in subsidies for    cash rate to 0.25%; introduced the first
                  apprentices, small businesses,     use of quantitative easing, setting a
                  pensioners and others; A$130       target of around 0.25% for bond yields.
                  billion to subsidise wages of an                            
                  estimated 6 million people.        
                                          [nL4N2BC1  March 19 - A A$90 billion funding facility
                  EE]                                to banks at fixed rate of 0.25%; A$15
                                                     billion purchase programme of residential
                                                     mortgage-backed and other asset-backed
                                                     securities; A$715 million support programme
                                                     for airlines.                         
 Indonesia        March 31 - Jakarta announces an    Feb. 20 -  Indonesia's central bank cuts
                  additional $24.9 billion in        its key policy interest rate by 25 bps to
                  spending, including a 3            4.75%.             
                  percentage point reduction in the  
                  corporate tax rate to 22%. Other   March 19 - Bank Indonesia cuts its
                  measures were expanding social     seven-day reverse repurchase rate by 25 bps
                  welfare to benefit up to 10        to 4.50%.             
                  million households, food           
                  assistance and electricity tariff  April 14 - Bank Indonesia cuts the reserve
                  discounts and waivers.             requirement ratio for banks by 200 bps and
                                                     50 bps for Islamic banks, while also
                                                     tweaking other liquidity rules, effective
                  May 18 - Indonesia says it will    May 1.             
                  revise its 2020 budget for a       
                  second time this year to           May 6 - Central bank chief pledges to
                  accommodate a $43 billion          provide as much liquidity as needed.
                  stimulus package. The programme                
                  includes tax breaks, subsidies     
                  for interest payments for small    
                  firms, liquidity support for the   
                  banking industry to restructure    
                  loans, bailouts for state firms    
                  and other measures. It is an       
                  expansion of the $25 billion       
                  spending response announced in     
                  late March.                        
 Brazil           March 16 - 150 billion reais       March 18 - Central Bank of Brazil cuts
                  budget boost to support most       interest rates by 50 bps to 3.75% and eased
                  vulnerable population and jobs;    capital requirements for financial
                  presidential decree declaring      institutions.
                  national emergency allowing the                                        [nL1N2B
                  government to waive fiscal         G0DD]
                  targets and free up budget         
                  resources.                         March 23 - 1.2 trillion reais central bank
                                                     programme to inject liquidity through
                  April 1 - Brazil's government      purchases of bank loan portfolios; new
                  launches a 51 billion reis         rules allowing banks to offer firms and
                  programme 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%.             
 South Korea      March 17 - South Korea's           March 16 - The Bank of Korea cuts interest
                  parliament approves a              rates by 50 bps to 0.75%.             
                  supplementary budget of 11.7       
                  trillion won to combat the         April 16 - Central bank sets up plan for
                  economic fallout from the          brokerages to borrow funds against
                  coronavirus outbreak.              collateral that includes AA- rated
                                                     corporate bonds.             
                                                     
                  March 19 - South Korean President  May 13 - The central bank says it will
                  Moon Jae-in pledges 50 trillion    raise the ceiling for its special loans
                  won in emergency financing for     programme by 5 trillion won to 35 trillion
                  small businesses and other         won to extend support to small businesses.
                  stimulus measures.                             
                                                     
                  March 24 - South Korea doubles     May 28 - The Bank of Korea cuts interest
                  its planned economic rescue        rates by 25 bps to a record low of 0.50%.
                  package to 100 trillion won. The               
                  package includes 29.1 trillion     
                  won in loans to small- and         
                  medium-sized companies, while      
                  another 20 trillion won will be    
                  used to buy corporate bonds and    
                  commercial paper of companies      
                  facing a credit crunch.            
                                                     
                                                     
                  March 30 - The 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 - President Moon Jae-in    
                  says the government will make an   
                  additional 36 trillion won of      
                  cheap loans available to           
                  exporters. Moon also says fresh    
                  measures worth 17.7 trillion won   
                  would be rolled out to boost       
                  consumption and support domestic   
                  demand.                            
                                                     
                  April 30 - Parliament approves     
                  the 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.  
                  The government will issue an       
                  additional 3.4 trillion won of     
                  deficit-covering bonds.            
                                                     
 South Africa     April 6 - South Africa says it     March 19 - The South African Reserve Bank
                  would set aside 1.2 billion rand   cuts its main lending rate by 100 bps to
                  to help small-scale farmers in a   5.25%.             
                  bid to support food production.    
                                                     March 25 - The SARB announces a programme
                                                     to buy bonds on secondary market.
                                                                             
                                                     
                                                     April 14 - The SARB reduces its main
                                                     lending rate by another 100 bps to 4.25%.
                                                                 
                                                     
                                                     May 21 - The SARB cuts its main lending
                                                     rate by 50 bps to 3.75%.             
 Mexico           April 5 - Mexico's president       March 20 - Mexico's central bank cuts rates
                  unveils a plan to lift the         50 bps to 6.50%.             
                  economy out of the coronavirus     
                  crisis, vowing to help the poor    April 8 - Mexican financial authorities
                  and create jobs.                   agree to apply looser liquidity rules on
                                                     banks to help them weather the economic and
                  April 17 - The president vows to   financial storm caused by the coronavirus
                  inject around $2.5 billion into    outbreak.             
                  the economy in May to mitigate     
                  the effects of the pandemic.       April 21 - Mexico's central bank announces
                                                     around $31 billion in support for the
                                                     financial system and cut borrowing costs in
                  April 22 - Mexico will increase    the country's most decisive move yet to
                  spending on social programs and    cushion the blow of the pandemic.
                  infrastructure projects by $25.6               
                  billion, President Andres Manuel   
                  Lopez Obrador says.                May 14 - Mexico's central bank cuts its key
                                                     interest rate by 50 bps to 5.50%.
                                                                 
                                                     
                                                     
 Argentina        March 23 - The Argentine           March 19 - Argentina's central bank says it
                  government says it will make a     will lower reserve requirements for banks
                  one-time payment of 10,000 pesos   that extend special credit lines to small
                  in April to low-income or          and medium-sized enterprises at a maximum
                  informal workers unable to pay     annual interest rate of 24% in a bid to
                  their bills because of the         offset the impact of coronavirus.
                  nationwide shutdown ordered by                 
                  government to halt the spread of   
                  the coronavirus.                   
                                                     
                  April 20 - Argentina's government  
                  says it will widen an economic     
                  aid package to counter the impact  
                  of coronavirus to 850 billion      
                  pesos, equivalent to around 2.9%   
                  of the country's gross domestic    
                  product.                           
 
 (Compiled by Reuters Polls; Editing by Catherine Evans/Gareth Jones/Susan Fenton/Barbara
Lewis/Giles Elgood/Dan Grebler)
  
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