Overview
The first confirmed COVID-19 case was reported on March 20, 2020. Prevention measures taken by the authorities include: installation of body temperature scans in airports, suspension of official travel and flights to China and other heavily affected countries, preparation of quarantine areas in hospitals, suspension of flights from European countries affected by COVID-19, the United States, Brazil, Senegal and Nigeria, as well as maritime traffic (with few exceptions), and quarantine of the island of Boa Vista where the community spread started inside a resort hotel. The authorities have also prepared a contingency plan and put in place a rapid response team. In late March, they declared the state of emergency, put in place social distancing measures, restricted travel between the nine inhabited islands, and put the country in lockdown for non-essential activities. Commercial air and passenger traffic resumed on October 12.
Reopening of the economy. On May 29, 2020, the government lifted the State of Emergency for all islands. In line with it, the Prime Minister announced a deconfinement plan that includes : (i) resumption of inter-island air travel on July 15, (ii) resumption of maritime connections for passenger transport, originating and destinating to Boa Vista island on June 1 and to Santiago island on July 15, (iv) restarting of cultural and sport events on October 1, (v) reopening of restaurants with regular hours on June 1, (vi) increased rapid tests in Praia’s laboratories, (vii) creation of an incentive framework to support companies to adapt their activity to the new requirements and standards of the deconfinement plan, and (viii) implementation of a digital platform for tracking positive cases of COVID-19. Commercial air and passenger traffic resumed on October 12, 2020. In response to the recent surge in cases the authorities on April 30, 2021 declared a state of emergency for 30 days in all the islands except Brava along with the reinforcement of existing measures and protocols.
Official Resources
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COVID-19 Restrictions
Movement Restrictions
- Is a curfew in place? No
- Are there restrictions on intercity or interstate travel? Yes
- Islands with a COVID-19 infection rate below 20 per 100,000 inhabitants are considered “green;” passengers from those islands do not need COVID-19 tests for inter-island travel. Travel from other islands requires proof of a negative rapid test.
- All inter-island travelers are required to fill out a Health Surveillance Survey prior to departure.
- For available flights, please visit https://www.ticv.cv. For the latest ferry schedule, please visit https://www.cvinterilhas.cv/routesschedules.
Transportation Options
- Are commercial flights operating? Yes
- Is public transportation operating? Yes
- Face masks are required in any shared vehicle, such as a taxi or bus.
Fines for Non-Compliance (if applicable)
- Anyone in violation of the face mask requirement may be subject to a fine up to 15,000 CVE (approximately $165).
Economic Measures
Key Policy Responses as of June 2, 2021
FISCAL
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The authorities have reprioritized spending through a revised budget, which is currently in parliament. In the meantime, they have taken measures to support the private sector, including loan guarantees and tax obligations facilities as follows: loan guarantees of up to 50 percent for large companies in all sectors (CVE 1 billion, about €9 million); up to 80 percent for companies in the tourism and transport sectors (CVE 1 billion); up to 100 percent for small-and medium-sized enterprises in all sectors (CVE 300 million, €2.7 million) and for micro-enterprises in all sectors (CVE 700 million CVE, about €6.7 million). Other measures include faster settlement of invoices and VAT refunds, extension of the tax payment period, payment in installments for VAT and other withholding taxes, cancellation of contributions to the Pension Fund for three months, and funding of an emergency plan with CVE 76 million through the reallocation of budgetary appropriations, to cover additional expenses for personnel, training and medical equipment.
For the most vulnerable, mitigating measures are estimated at CVE 2.2 billion (1.2 percent of GDP). They comprise: (i) income compensation to provide financial support to individuals operating in the informal sector; (ii) social inclusion emergency measures for vulnerable people without income; (iii) social inclusion income, with support from the World Bank ; (iv) support to microfinance institutions to support interest-free loans to vulnerable households and; (v) care for the elderly with food assistance and other financial support.
MONETARY AND MACRO-FINANCIAL
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In late March, the central bank decided to loosen the monetary policy stance and to increase liquidity in the banking system. Key measures included a reduction in rates as follows: the policy rate by 125 basis points to 0.25 percent, the minimum reserve requirements from 13 to 10 percent, and the overnight deposit rate by 5 basis points to 0.05 percent; and the setting up at the central bank of a long-term lending instrument for banks. The central bank (BCV) also called on banks to grant a moratorium on loans obligations to borrowers in good standing with their payment record as of end-March 2020.
On April 1, 2020, the authorities introduced a moratorium on insurance payments and loans repayment during April-September 2020 for household, companies, and non-profit associations, as well as the SMEs. The moratorium on loan repayment was extended to December 31, 2020 and will now remain in place until the end of the third quarter of 2021.
The BCV also implemented prudential measures, including the reduction in capital adequacy ratio and provision for banks depending on requests by borrowers to place a moratorium or forbearance on loan repayment for three months.
Civic Freedom Tracker
STATE OF EMERGENCY AND CURFEW
The government declares a nationwide "state of emergency" until April 17, on account of the coronavirus. Measures to be taken include instructing all individuals to remain at home with limited exceptions for essential activities and health care. (See primary source or citation here)
Type: order
Date Introduced: 1 Apr 2020
Issue(s): Emergency, Movement
