Georgia to receive $286 million in reserve asset from IMF

The 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. Photo: Nino Alavidze/Agenda.ge.

Agenda.ge, 07 Sep 2021 - 18:52, Tbilisi,Georgia

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’. 

The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy. It will particularly help our most vulnerable countries struggling to cope with the impact of the Covid-19 crisis,” Georgieva said.

The general allocation of SDRs became effective on August 23, 2021. The newly created SDRs will be credited to IMF member countries in proportion to their existing quotas in the fund. 

The previous similar distribution took place in 2009, when the IMF introduced the SDR equivalent of $250 billion to help member countries emerge from the 2008 global financial crisis. During this round of allocations, Georgia received 144 million SDRs (equivalent to $225.5 million).