IMF approves $200 mln for Georgia to address economic impact of coronavirus
Tao Zhang, IMF Deputy Managing Director and Chair stated that the coronavirus pandemic “has hit the Georgian economy hard”.Photo: Nino Alavidze/Agenda.ge
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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 IMF Executive Board approved US$200 million financing to #Georgia to address the effects of the #COVID19 pandemic. The Board also completed the 6th review for Georgia's economic program. https://t.co/uGzINNNbmO pic.twitter.com/IQ8i2iRFS1
— IMF (@IMFNews) May 1, 2020
Tao Zhang, IMF Deputy Managing Director and Chair stated after the Executive Board discussion yesterday that the coronavirus pandemic “has hit the Georgian economy hard”.
A drop in external demand and tourism has widened the current account deficit, led to a depreciation of the exchange rate, and a substantial decline in economic activity. The authorities have acted rapidly by introducing sweeping containment measures and targeted support to households and to most affected sectors”, he said.
Zhang also noted that “the fiscal deficit has increased and external financing has been mobilised to allow for additional spending”.
Advancing structural reforms would help sustain medium-term growth potential and achieve a faster recovery after the pandemic. Adopting the indexation rule for public pension would contribute to sustain the income of pensioners. Completing the banking resolution framework and implementing the insolvency framework would help support the recovery”, Zhang added.
He considers that “augmentation of access” under the Extended Fund Facility arrangement should support the authorities’ policies to address the COVID-19 shock and help meet the urgent balance-of-payments need.
Georgian Prime Minister Giorgi Gakharia has thanked the IMF on Twitter:
He said this is "a strong message for the international donor community" and "together we will combat the invisible enemy".
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.
The International Monetary Fund (IMF) is committed to providing support to Georgia under the challenging and uncertain circumstances due to the coronavirus, said IMF Resident Representative in Georgia Selim Cakir.
The International Monetary Fund (IMF) forecasts 4.3 per cent growth for the Georgian economy in 2020, says IMF mission Chief Mercedes Vera-Martin.
Some Japanese, South Korean and German companies have expressed their desire to transfer part of their businesses to Georgia, Economy Minister Natia Turnava has recently stated. Minister Turnava considers that by doing so, global companies would gain a comparative advantage.
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.
Georgia has seven new cases of coronavirus increasing the total number of cases to 589. Meanwhile, the number of recoveries has increased to 215 as eight infected individuals have recovered. As of now, there are 364 infected individuals in Georgia; eight people have died.
Georgia will receive €150 million in macro-financial assistance from the European Council to help the country ‘cope with the economic fallout’ of the COVID-19 pandemic. Georgia is among the ten enlargement and neighbourhood partners of the European Union which will receive the assistance ‘in the form of loans on highly favourable terms’.
The United States Centers for Disease Control and Prevention (CDC) is providing an additional $3 million in assistance to the Georgian healthcare system in response to COVID-19.The US Ambassador to Georgia, Kelly Degnan, said that the CDC has been supporting Georgia to prepare for and response to the pandemic since January.
The Council of the European Union has adopted a decision to provide €150 million in macro-financial assistance package to help Georgia ‘cope with the economic fallout of the COVID-19 pandemic’. Georgia is among the ten enlargement and neighbourhood partners of the EU which will receive the financial assistance 'in the form of loans on highly favourable terms'.
The United States government has committed an additional $1 million in new USAID funding to support Georgia’s response to coronavirus. The US government has committed a total of $2.7 million to mitigate the spread of COVID-19 in Georgia.
A Chinese company is relocating its plastic recycling plant to the Georgian municipality of Khobi within the '100 Investment Offers to Business' programme, announces the Georgian Ministry of Economy.
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.
The International Monetary Fund (IMF) has approved a general allocation of Special Drawing Rights (SDRs) equivalent to $650 billion of which Georgia will receive SDR 202 million which is equivalent to $286 million. IMF Managing Director Kristalina Georgieva said that this is a historic decision and the largest SDR allocation in the history of the IMF and ‘a shot in the arm for the global economy at a time of unprecedented crisis’.