International Monetary Fund supports Georgia’s economic policy

Georgia, Azerbaijan and Kazakhstan signed a memorandum of Trans-Caspian International Transport Route (TITR) Association. Photo by N. Alavidze/, 16 Apr 2018 - 13:07, Tbilisi,Georgia

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.

The Georgian Government pledged to ensure fiscal consolidation over the medium term as well as to shift spending towards capital investment to address infrastructure bottlenecks.

After the IMF Executive Board approves the second review Georgia will receive $43.6 million over the course of this year.

The economic growth rate that we have since the beginning of this year provides a solid foundation for fulfilling all the obligations taken on by the Government of Georgia,” Georgia’s Economy Minister Dimitri Kumsishvili said today at the joint briefing held by IMF, members of the Georgian government and the National Bank of Georgia.

The joint briefing was held today by IMF, members of the Georgian government and the National Bank of Georgia. Photo by Georgia's Ministry of Economy.

Kumsishvili said that Georgia’s economic growth in 2017 was five percent, which was higher than previously forecasted and was largely caused by increased activity in the private sector - 39,000 new jobs and private sector turnover increased by 19 percent.

The program, which is being implemented in partnership with the International Monetary Fund, is fully based on the four-point reform plan of the Government of Georgia. The IMF fully agrees with the country’s political reform program and its economic policy. The successful completion of the second review confirms that the IMF supports the economic policy of the Government of Georgia”, said Kumsishvili.

The minister said that investors’ confidence would further increase towards Georgia’s business environment and this would help to attract more foreign direct investments.