Short term
1. Expedite the implementation of operational activities;
a. Ministry of Health (MOH) to press ahead with effective implementation of the COVID-19 preparations
2. Accelerate the implementation of the inclusive & targeted relief and to some extent stimulus packages for COVID-19 (increasing demand)
3. Ministry of Commerce, Industry and Labor (MCIL) to continuously monitor the prices of primary commodities as well as providing regular reports.
Medium Term
4. Advance the implementation of the list of pre-approved Public Sector Investment Programme of development projects/programs (infrastructure and investments)
5. Encourage frontloading of any grant financed development projects to ensure transparency.
6. Issuance of domestic denominated bonds with the appropriate terms of financing
A. Monetary policy (financial sector)
Short term
1. Provision of highly concessional stand-by credit facility to commercial banks to assist them;
2. Through moral suasion commercial banks are:
a. Encouraged to continuously provide debt reliefs to the banks cope with the effects of COVID-19 especially on the tourism sector
b. Urged to ensure that there is adequate provisions and value of collaterals to cover for potential debt defaults;
3. Through moral suasion, encourage non-bank financial institutions to continue/restart lending to business and the general public for economic activity recovery.
Medium term
4. Lower commercial banks’ term deposit interest rates significantly and subsequently the lending interest rates will be lowered;
5. The use of both government and central bank accounts to lower further the term deposits by asking for interest rates of only 2% or lower;
6. Closely monitor the quality of assets in the banking system to ensure adequate correspondent provisioning by commercial banks;
7. To consider using some of the non-deposit liquidity to acquire strategic assets to ensure their financial soundness.
B. Balance of Payment
Short term
1. A balanced approach on the safety and security of people selected for the Recognized Seasonal Employment (RSE) schemes and the significant benefits through remittances.
2. That all government foreign funding are received into the Central Bank of Samoa (CBS).
3. Effective management of the foreign reserves.
Medium term
4. Ensure timely and continuous replenishments of emergency financing facilities from international financial institutions for relief efforts and to assist our people in preparing in times of natural disasters.
5. To continue with the effective implementation of the exchange control measures;
C. Exchange Rate policy
Short to Medium term
1. Continue regular reviews (i.e. shift from annually to quarterly) of the exchange rate basket to ensure there is no evidence to suggest that the Tala is misaligned;
D. Other
1. Need to make ample provisions in the planning phase of developments to minimize disappointments.
2. Government is strongly encouraged to assist the business community wherever possible especially given the global and domestic situations that we are currently experiencing.
