Asian Development Bank offers support to Georgia in fight against COVID-19

The Asian Development Bank (ADB) is offering about $6.5 billion to address the immediate needs of developing states, including Georgia, as they respond to the COVID-19 pandemic. 

ADB President Masatsugu Asakawa discussed how the bank can support Georgia in its fight against the COVID-19 pandemic in a phone conversation today with Georgian Finance Minister Ivane Matchavariani. 

The ADB is fully committed to supporting Georgia at this unprecedented time and we are considering every option to ensure support is provided quickly and effectively. The ADB is ready to work with the government and key partners on countercyclical support that will enable it to meet the needs of the people most affected. Significant efforts are also underway to ensure that we can provide further support to the private sector", said Asakawa.

The ADB press release reads that Georgia is experiencing a dual shock from the direct impact of the pandemic and indirect effects of lower oil prices. The impact will be particularly severe on tourism and other services. Lower oil prices are negatively affecting remittances from neighbouring countries and trade flows are weakening as growth slows in these countries.

Asakawa recognised that Georgia has been a leading reformer and this has positioned the country well to deliver its response to the pandemic, including through tax concessions to the hard-hit tourism industry, capital expenditures to provide economic stimulus, and expanding access to funding for micro, small, and medium-sized enterprises and private individuals. 

These measures will ensure that Georgia is able to use resources effectively and lay the foundation for a quicker recovery, read the press release.