Georgia discusses credit guarantee reform with IMF
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The International Monetary Fund (IMF) will team up with Georgia’s Ministry of Economy to create a credit guarantee fund for Georgia.
The Credit Guarantee Mechanism, initiated by Georgia’s Economy Minister Dimitri Kumsishvili, is a guarantee fund that comes as a guarantor for loans of small and medium-sized businesses to be received from commercial banks.
It makes it easier for small and medium businesses to access financing which will give a significant boost to economic growth.
We asked the International Monetary Fund full support in setting up a credit guarantee fund. The IMF will work together with us in this direction and I am sure that we will receive quite a good result”, said Kumsishvili after the meeting with the Managing Director of the IMF Tao Zhang in the US.
Tao Zhang at the meeting with First Vice PM Kumsishvili: #Georgia is making progress in implementing reforms supported by the IMF. Accelerating reforms will help the country promote higher and more inclusive growth. pic.twitter.com/HstUBtHHN7
— IMF (@IMFNews) May 22, 2018
The meeting was held yesterday during the Georgian governmental delegation’s visit to the US.
On the other hand Zhang talked about Georgia's economic development in both sectoral and fiscal sectors.
We are very delighted that Georgia has good results in economic growth and in terms of reforms. We have reiterated at this meeting [our intention] to continue working with them in order to achieve [our] goals and of course, we wish Georgia and the Georgian people the best”, Zhang said.
Meanwhile, IMF Resident Representative Francois Painchaud told Agenda.ge that a Credit Guarantee Fund to support lending to SMEs could provide benefits to Georgia, but it also poses challenges.
Such a fund should therefore be designed carefully. Any such initiative should be market based, targeted, easy to dismantle in the future, and incorporated transparently in the budget. Further specifics, including the size of the fund, its sectoral allocation and the risk assessment process, need to be formulated before the IMF can evaluate it. We look forward to discussions with the authorities as they advance with their proposal”, Painchaud said.
The International Monetary Fund (IMF) is moving its forecast up, saying the Georgian economy will grow by 4.5 percent in 2018 and 4.8 percent in 2019.
The International Monetary Fund has completed the second review on the Extended Fund Facility approved last year under which Georgia is receiving $285.3 million over a period of three years.
A delegation from the International Monetary Fund (IMF) is visiting Georgia to discuss the country’s economic outlook with local officials. During the visit the IMF mission will meet Georgian authorities as well as representatives from the private sector.
Georgia’s economic recovery is gaining momentum, inflation is projected to decline starting in early 2018, and the external position has strengthened, says the First Review of the Extended Arrangement under the Extended Fund Facility for Georgia completed by the International Monetary Fund (IMF) Executive Board.
Georgia’s Economy Minister Dimitry Kumsishvili has offered the United States Secretary of Commerce, Wilbur Louis Ross to open the US Regional Office of Commerce in Georgia, which would cover South Caucasus states as well as the countries of the region.
A US trade mission will visit Georgia to familiarise themselves with the local business environment, explore available opportunities and establish business ties with Georgian companies.
The International Monetary Fund (IMF) expects economic activity to remain strong in Georgia, supported by a favourable global environment and the firm implementation of programme policies.
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An International Monetary Fund (IMF) team, led by Mercedes Vera-Martin, has concluded its visit to Georgia, which was held during August 21-27 to discuss recent economic and financial developments and progress with structural reforms.
The International Monetary Fund has completed the third review on the Extended Fund Facility approved last year under which Georgia is receiving $285.3 million over a period of three years.
Business entry rates in the Caucasus and Central Asia region are much lower than in other regions, including sub-Saharan Africa, but Georgia is a notable exception, says the report of the International Monetary Fund (IMF).
Small and medium sized businesses in Georgia will have better access to finances thanks to a new credit guarantee programme that is coming into force today.
The Georgian Ministry of Economy is working on renewing a credit guarantee programme that came into force in April 2019 and aims to support small and medium sized businesses which operate in sectors where loan issuance is restricted, or do not have enough property to secure a loan.