Specific sectors in the trade, travel and tourism sectors will be affected. Eventually, supply shortages, delays in projects and major events, and reduced business hours, will flow through to weaker demand and a slowdown in economic activity. As such, the Reserve Bank projects economic growth for 2019/20 to fall below 3% and may be revised lower.
In light of the negative impact of COVID-19 on the economy, the Reserve Bank Board of Directors met to consider monetary policy measures to support economic growth while preserving financial stability.
The Directors were pleased to note that the banking system was strong and well capitalized with ample liquidity to withstand the impact of the coronavirus.
The Board, approved the following NRBT monetary policy measures to support the banks in mitigating the negative impact of the coronavirus on the economy as well as provide essential financial services to households and businesses.
- Provide liquidity support to the banking system if needed
- The banks are well capitalised to absorb risk and there is no adjustment required at this time
- Ease the exchange control requirements if needed
- Continue with current practice on issuing Government Bonds if required
- Weekly meetings with the banks to ensure clear communication to enhance preparedness and best practises
- Continue to build awareness and expectations through press releases for adequate preparedness and apply best practice
The Reserve Bank also met with the commercial banks who are ready to assist their customers affected by the coronavirus on a case by case basis and depending on individual customers’ circumstances. The banks confirmed the following measures:
- Reduce or suspend the principal loan repayments to interest only loan repayments
- Restructure loans to businesses that have reduced business hours, in affected sectors such as tourism and related industries like transportation.
- Restructure loans to individuals who have been laid off
- Extending the term of the loans to reduce repayments
- Reducing loan interest rates on a case by case basis
- Provide access to short-term funding, if required
Bank customers are encouraged to contact their banks to discuss their circumstances.
The Reserve Bank will continue to monitor and assess the coronavirus impact on the financial system and the economy, and will adjust these monetary policy measures, if required, to maintain financial and monetary stability.
Mateuteu 'a e ngaahi Pangike ki ha ngaahi uesia 'o e COVID-19
Na’e lipooti ‘e he Kōvana ‘o pehee’ ko e ngaahi tefito’i me’a ngāue faka’ekonomika’ ‘oku ‘i he tu’unga mālohi, ka neongo ia’ ‘oku fakafuofua ‘e ‘i ai ‘a e uesia lahi ‘e he COVID-19 ‘a e ngaahi ‘akauni palanisi fakatu’apule’anga’, pa’anga mohe’, ngaahi ‘akauni ‘a e pule’anga’, pea pehē foki ki he ngaahi tupu faka’ekonōmika. ‘Oku ‘i ai ‘a e ngaahi sekitoa mahino ‘e uesia ‘i he tafa’aki ki he fēfakatau’aki’, fefolau’aki’, pea pehē foki ki he sekitoa folau’eve’evā. ‘E hoko atu ai pē ki he nounou ‘i he ngaahi koloa ‘oku tuku atu’, ko hono toloi ‘o e ngaahi polōseki’ mo e ngaahi polokalama lalahi, pea pehē foki ki he fakasi’isi’i ‘o e ngaahi houa ngāue ‘i he ngaahi ngāue’anga ‘o a’u ai ki ha tu’unga ‘oku to e si’isi’i ange ai ‘a e ngaahi fiema’u pea pehee foki ki he ngaahi ‘ekitivitī faka’ekonōmika. ‘I he’ene pehē, ‘oku fakafuofua ai ‘e he Pangikē Pule ‘e holo ‘a e tupu faka’ekonōmika ki he 2019/20 ‘o si’i hifo ‘i he peseti ‘e 3 pea ‘e malava pē ke to e holoki.
Ka ‘i he makatu’unga mei he tu’u laveangofua ke uesia ‘e he COVID-19 ‘a e tu’unga faka’ekonōmika´, na’e fakahoko ai ‘a hono siofi ‘e he Poate ‘a e kau Talēkita ‘a e Pangikē Pule ‘a Tonga´ ‘a e ngaahi fokotu’utu’u ngāue ke tokoni’i ‘a e tupu faka‘ekonōmika´, ka ‘i he taimi tatau kei tauhi pē ‘a e ma’uma’uluta ‘o e ngaahi ngāue fakapa’anga.
Na’e fakafiemālie pē ki he Kau Talēkitā ‘i he mahino ‘oku ‘i he tu’unga mālohi fe‘unga 'a e ngaahi pangikē pea pehē ki he’enau ngaahi sino’i pa’anga tefitō pea mo e lahi fe’unga ‘a ‘enau pa’anga ngāue´ ke tali ha ngaahi uesia mei he kolona vailasi
Na’e tali ai ‘e he Poate ‘a e ngaahi fokotu’utu’u ngāue ke tokoni’i ‘a e ngaahi pangikē ki hono fakangatangata ‘a e ngaahi uesia ‘a e kolona vailasi ki he tu’unga faka’ekonōmika pea pehē foki ki hono fakahoko ‘a e ngaahi tefito’i sēvesi fakapa’anga ki he ngaahi ‘api taautaha pea mo e ngaahi pisinisī foki.
- Fakalahi ‘a e pa’anga ngāue ‘a e ngaahi pangikē ‘oka fiema’u
- Ko e tu’unga lolotonga ‘o e sino’i pa’anga tefito ‘a e ngaahi pangikē ‘oku fe’unga ke ne matu’aki ha ngaahi fakatamaki ‘e ala hoko, pea ‘oku ‘ikai ha liliu ‘e fiema’u ‘i he taimi’ni.
- Fakafaingofua’i ‘a e ngaahi tu’utu’uni fekau’aki mo e fakafetongi pa’anga muli´ ‘oka fiema’u
- Hokohoko atu pē ‘a e founga lolotonga ki hono fakatau ‘a e ngaahi pōnite ‘a e Pule’anga´ ‘oka fiema’u
- Fakataha fakauike mo e ngaahi pangikē ke fakapapau’i ‘oku tonu e ngaahi fetu’utaki´, mateuteu fe’unga pea ‘omai mo ha ngaahi founga ngāue kuo ‘osi fakapapau’i ‘oku lelei
- Hokohoko atu hono fakahā ki he fonua´ ‘a e ngaahi fokotu’utu’u ngāue ke tokoni ke nau toe mateuteu ange pea mo fakahoko ‘enau ngaahi ngāue fakapa’anga ‘i ha ngaahi founga ‘oku fakapotopoto
Na’e talatalanoa foki ‘a e Pangikē Pule mo e ngaahi pangike’ pea ‘oku tu’u mateuteu ‘a e ngaahi pangikē ke tokoni ki he’enau kau kasitoma´ ‘oku uesia ‘e he kolona vailasi ‘o fakatatau pē ki he fiema’u ‘oku mo e tu’unga ‘oku ‘i ai ‘a e kasitoma´ takitaha. Ko e ngaahi founga eni ‘e malava tokoni atu ai ‘a e ngaahi pangikē:
- Holoki pe toloi ‘a hono tā fakafoki ‘a e sino’i nō ka e tā fakafoki pē ‘a e totongi tupu ‘i he nō, fakataimi.
- Fokotu’utu’u fo’ou ‘a e ngaahi aleapau nō ki he ngaahi pisinisi kuo fakasi’isi’i ‘a ‘enau houa ngāue, tautautefito ki he sekitoa takimamata´ moe ngaahi sekitoa fekau’aki´ ‘o hangē koe fefolau’aki´
- Fokotu’utu’u fo’ou ‘a e ngaahi aleapau nō ki he ni’ihi kuo tukuange mei he ngāue
- Fakalōloa atu ‘a e ta’u ke tā fakafoki ai ‘a e nō ke malava ‘o holo ai ‘a e mahu’inga ‘o e tā nō
- Holoki e totongi tupu he ngaahi nō ‘o fakatatau pe ki he keisi takitaha
- Faka’atā ha ngaahi nō taimi nounou ‘oka fiema’u
‘Oku faka’ai’ai atu heni ki he kau kasitoma ‘a e ngaahi pangikē ke nau fakatalatalanoa ki he’enau ngaahi pangikē fekau’aki mo ‘enau ngaahi tu’unga fakapa’anga.
‘E hokohoko atu ai pē hono muimui’i ofi mo hono siofi ‘e he Pangikē Pule´ ‘a e ngaahi uesia ‘a e kolona vailasi ki he tafa’aki fakapa’angā’ mo e tu’unga faka’ekonōmika, pea mo tu‘u mateuteu ke liliu ‘a e ngaahi fokotu‘utu‘u ngāue fakapa‘anga´ ‘o ka fiema‘u ke kei tauhi pē ‘a e ma’uma’uluta ‘o e ngaahi ngāue fakapa’anga.
