World Bank allocates €45 mln to help Georgia mitigate coronavirus economic impact

The World Bank is allocating €45 mln to help Georgia mitigate the economic impact of the coronavirus and to support the Georgian government cover unanticipated financial gaps in the budget that have arisen due to the pandemic.

World Bank Regional Director for the South Caucasus Sebastian Molineus said that Georgia’s containment measures were successful in containing the spread of the virus but noted that they come with fiscal and economic costs.

We stand by Georgia’s side as a strong partner during this challenging time and support the government in its swift and effective anti-crisis measures to save people’s lives and protect livelihoods, mitigate the economic impacts of COVID-19, and maintain Georgia’s strong record of economic reforms”, said World Bank Regional Director for the South Caucasus Sebastian Molineus.

The financing is allocated in the framework of the Georgia Economic Management and Competitiveness Development Policy Operation (DPO) which aims to increase jobs, develop economic inclusion and resilience, improve the efficiency of using public resources, promote competitive markets, diversify the financial sector, improve teacher deployment and remuneration and strengthen investment promotion.

This allocation is the second in a series of three lending operations of the World Bank to support Georgia amid the coronavirus.

The first operation was a $80 million financial support package provided under the Fast Track COVID-19 Facility, the aim of which was to address and mitigate the health and social impacts of the pandemic. 

• World Bank pledges $80 mln to support Georgia’s response to COVID-19 pandemic

The third tranche will focus on micro, small and medium enterprises and jobs affected by the pandemic.