Georgia’s economy in focus at IMF meeting

Georgia is taking action to tackle the effects of the recent economic developments.

Prime Minister Irakli Garibashvili shared the country’s plan of action with representatives the Analytic Mission of International Monetary Fund (IMF).

The sides met in Tbilisi yesterday and discussed the current situation in the region and the major factors that have influenced the economies of other countries in the region.

IMF said within the framework of the Mission, Georgia’s economic processes and macro-economic parameters will be evaluated and a risk analysis will be carried out in cooperation with the Government and the National Bank.

The Georgian side was represented at the meeting with IMF's Analytic Mission by a number of officials, including Vice Prime Minister and Minister of Economy and Sustainable Development Giorgi Kvirikashvili, Finance Minister Nodar Khaduri and the country’s Deputy Finance Ministers.

Last week IMF Resident Representative in Georgia Azim Sadikov told Rustavi 2 television channel that the Georgian economy should be comprehensively evaluated in light of the recent economic hardship, and the external factors affecting the economy should be adequately reviewed.

Furthermore, the causes and implications of the "unavoidable” depreciation of the national currency should also be investigated, and once the situation was comprehensively reviewed, action should be taken accordingly, he said.

The IMF representative voiced his opinion about how to restore order and stability in the Georgian economy, following recent regular meetings with Georgian authorities, where parties discussed the current economic situation in Georgia and the "unavoidable” depreciation of the Lari (GEL).

"We have been discussing this issue together with Georgian Government representatives. Our Mission started its activities yesterday. After the correct diagnosis we will continue cooperating with the Government and the National Bank of Georgia to think about appropriate reciprocate activities,” Sadikov said.

For the past several days the Government’s economic team has been holding meetings with IMF representatives in an attempt to stabilise the country’s currency crisis.

It was earlier announced IMF would advise the Government’s economic team about which financial institution it should take out a loan with – the money of which would be spent on implementing different infrastructural projects.

The Government’s economic team was exploring the idea of the World Bank, the Asian Development Bank and the European Bank for Reconstruction and Development as possible donor financial institutions, he said.