IMF financing of $450 mln to help Georgia contain COVID-19 pandemic, limit its economic impact
Higher IMF financing will help meet urgent medical and socio-economic needs, secure other donor funding, and support the recovery. Photo: Nino Alavidze/Agenda.ge.
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The International Monetary Fund (IMF) is offering $450 million to help Georgia contain the COVID-19 pandemic and limit its economic impact, announces the IMF.
The IMF reached an agreement with the Georgian authorities for the completion of the Sixth Review and an augmentation of access under the Extended Fund Facility.
The team will recommend an increase in IMF support to Georgia by 130 per cent of the quota (about $375 million) to help finance health and macroeconomic stabilisation measures, meet urgent balance of payments needs arising from the COVID-19 pandemic, and catalyse support from the international community. The disbursement associated with this review (about $200 million) will be allocated for budget support to help the authorities meet urgent medical and socio-economic needs, to be disbursed with the completion of this review", said the mission Chief for Georgia at the IMF Mercedes Vera-Martin.
She said that the agreement is subject to approval by the executive board. Consideration by the executive board is expected in early May.
With the financing available to Georgia upon completion of the review, total disbursements under the EFF arrangement will amount to 155 percent of quota (at about $450 million)", said Vera-Martin.
She also made a statement about the economic outlook of Georgia and said that with the Covid-19 pandemic, the outlook has "significantly deteriorated".
Real GDP is expected to decline by 4 per cent in 2020, although projections are subject to more than the usual uncertainty. Deteriorating trade, halted tourism, and weaker remittances are expected to widen the current account deficit to 11⅓ per cent of GDP in 2020. Rising global risk aversion is likely to reduce private financial inflows and delay investment. Urgent balance-of-payments needs rising from the Covid-19 shock are estimated at about $1.6 billion in 2020-21, to be financed by IMF financing and other donor assistance", Vera-Martin said.
Vera-Martin praised the efforts of the Georgian government and said that the authorities have taken "decisive steps" to contain the COVID-19 pandemic.
In her opinion prudent macroeconomic policies, the buildup of fiscal and foreign exchange reserves in recent years, a well-capitalised financial system, and significant financial donor support make the Georgian economy prepared to address the shock.
The International Monetary Fund (IMF) is working with the Georgian authorities to provide 'additional financing' to contain the spread of the coronavirus and support the Georgian people and economy, announced the Mission Chief for Georgia at the International Monetary Fund (IMF) Mercedes Vera-Martin in a statement published on March 30.
Economic growth in Georgia is projected to reach 3 per cent in 2021, while it will be reduced by 4 per cent in 2020, says the International Monetary Fund (IMF) in its World Economic Outlook. It says that the COVID-19 pandemic is inflicting high and rising human costs worldwide and the necessary protection measures are severely impacting economic activity.
The International Monetary Fund (IMF) has praised the steps of the Georgian government to support its citizens and the private sector amid the coronavirus pandemic. The IMF is allocating financial support for Georgia in the framework of the Extended Fund Facility (EFF) programme to minimize the coronavirus’ impact on the Georgian economy.
The government of Georgia has created an anti-crisis economic group as part of the Interagency Council to better manage the coronavirus’ impact on the Georgian economy, announces the Prime Minister Giorgi Gakharia.
Two more people have recuperated from coronavirus in Georgia increasing the total number of recoveries to 71. The country has confirmed a total of 306 cases of COVID-19 since February 26, including 230 active cases of the virus and three deaths.
The European Investment Bank (EIB) will allocate €200 million for development of healthcare infrastructure in Georgia, as well as supporting its fiscal and other needs amid the coronavirus pandemic. Georgian Prime Minister Giorgi Gakharia and Vice-President of the EIB Lilyana Pavlova, held a discussion during a video conference earlier today.
The European Union, Asian Development Bank, the European Bank for Reconstruction and Development, European Investment Bank, German Development Fund, French Development Agency will support the Georgian economy with $1.5 billion by the end of 2020, announced Georgian Prime Minister Giorgi Gakharia today.
The German development agency GIZ has provided 100,000 face masks and 2,000 litres of hand sanitising liquid to the Georgian Ministry of Health to help handle the coronavirus pandemic.
The European Commission has adopted a proposal for a COVID-19 support package for Georgia comprised of €150 million to help the country limit the economic fallout of the coronavirus pandemic.
The Executive Board of the International Monetary Fund (IMF) has approved $200 million for Georgia to help address the effects of the coronavirus. This, IMF said, will help Georgia “meet urgent balance of payments and fiscal needs” stemming from the COVID-19 pandemic, including “increased spending on health services and social protection”.
The European Bank for Reconstruction and Development has released its 2020-2021 transition report in which the IFI assesses Georgia’s economic situation amid the pandemic, forecasting 3.5 per cent growth for 2021.
Georgian Prime Minister Irakli Garibashvili has discussed the Covid-19 situation with the area mission chief of the International Monetary Fund James John during an online meeting earlier today.