Georgian Gov't tries to stabilise Lari through the effort of IMF

The sides will discuss the issues of economic cooperation between Georgia and Ukraine., 19 Feb 2015 - 17:39, Tbilisi,Georgia

The Georgian Government has approached the International Monetary Fund (IMF) for additional financial aid in a bid to stabilise the country’s falling currency "as soon as possible”.

The Lari, the national currency, began falling in value in November 2014 when one USD was 1.75 Lari. Today, the current rate saw one USD valued at 2.0839 Lari, according to the National Bank of Georgia.

IMF has offered significant financial support to Georgia in the past six months.

In December IMF allocated a new tranche of financial aid worth nearly $58.1 million to Georgia after IMF reviewed the implementation of the Economic Aid programme. In total, Georgia received $116.3 million within this program that was approved on July 30.

Despite this aid, Georgia is now asking for more.

Today, Econony Minister Giorgi Kvirikashvili explained the additional funds will be invested in different infrastructural projects.

He said more money was needed now, as current action to boost the economy in terms of increasing the number of visitors to Georgia, encouraging exports and supporting the construction sector, would take some time before the effects were felt.

"I said that export promotion measures could not have the desired effect in a short period of time,” Kvirikashvili said.

"For having an effect as soon as possible, we aim to meet representatives of the International Monetary Fund and discuss investment opportunities in infrastructural projects. We require additional funds for the purpose of capital expenditures. This is the primary measure that is adequate to the current situation,” Kvirikashvili added.

Meanwhile in August of 2014 it was reported that IMF will allocate a tranche of $140 million for Georgia.

At the time, Georgia’s Finance Minister Nodar Khaduri told reporters Georgia will get these loan funds from IMF over the next three years.