Asian Development Bank offers $100m for inclusive growth in Georgia

The Asian Development Bank (ADB) is supporting Georgia’s democratic development by offering a $100 million USD loan to enhance fiscal sustainability, protect social expenditures, and boost domestic savings and private sector investment to stimulate the economy.

Several days ago ADB announced the loan will help Georgia maintain macroeconomic stability, particularly now when the investment growth, export and the inflow of remittances were reduced in Georgia as its economy was affected by the recession and weak economic performance of its regional trading partners.

Gross Domestic Product (GDP) growth in 2016 is projected to be modest at three percent before increasing to around four percent in 2017, with continued fiscal deficit. ADB assistance will help Georgia maintain macroeconomic stability, streamline public spending, and expand access to finance,” said ADB in a statement.

ADB will continue to provide technical support for the development of the new private pension savings scheme, including the preparation of relevant legislation and its operations,” said the Bank.

The agreement was signed on September 2 between Georgia's Finance Ministry and the ADB. Photo by Georgia's Ministry of Finance. 

The loan will also allow ADB to support reforms to improve the adequacy, fairness, and sustainability of Georgia’s pension system. The reforms will ensure fair and equal treatment for men and women, allowing both to receive sufficient pension assets to have an adequate retirement income for old-age.

The Bank said women in Georgia were particularly expected to benefit from the program due to the focus on providing local currency financing for small businesses managed by women.

Since Georgia joined ADB in 2007 the country has received $1.9 billion in assistance from ADB and the value of current ADB programs in Georgia is more than $925 million.