IMF approves $154m economic assistance package for Georgia

The International Monetary Fund (IMF) pledged a multi-million assistance package would be offered to Georgia to support the country implement economic reforms to improve the country’s business environment, create jobs, reduce poverty and more.

The Executive Board of the IMF approved a 36-month $154 million USD Stand-By Arrangement (SBA) with Georgia to support the country’s economic program.

About $62 million USD will be distributed immediately while the remaining amount will be phased over the duration of the program, IMF said on Monday.

IMF’s Executive Board said the SBA aimed to reduce macroeconomic vulnerabilities, increase policy buffers and support growth, while making the Georgian economy more resilient to external shocks.

Deputy managing director and acting chair Min Zhu said structural reforms would be essential for achieving the program objectives of enhanced competitiveness and an improved business climate.

"In this context, the signing of the Deep and Comprehensive Free Trade Area (DCFTA) and EU Association Agreements are welcome developments that signal Georgia’s deeper integration with the EU, which should enhance export competitiveness and help boost Foreign Direct Investments,” Zhu said.

Zhu was confident Georgia’s macroeconomic performance under the previous Fund-supported program demonstrated a strong commitment to economic and structural reforms, which contributed to a recovery in growth and improved price stability.

Georgia’s proposed structural reforms will focus on improving the business environment, developing education and training, creating jobs, and reducing poverty and inequality.

The reform agenda included enhancing competition, strengthening property rights, developing a commercial dispute resolution mechanism, streamlining bankruptcy procedures, improving workers’ skills and further improving public administration.