Georgia, IMF reach deal on $289 million macroeconomic, financial programme
The three-year economic programme is scheduled to be considered by the Executive Board of the Fund in May under a Stand-By Arrangement. Photo: aa.com.tr
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Georgia and the International Monetary Fund (IMF) have reached a deal on a $289 million programme for macroeconomic and financial stability of the country, the IMF mission chief James John announced on Friday.
Subject to approval by the IMF Executive Board, the agreement was reached between Georgian officials and an IMF team through remote meetings between November 18 and March 31. It aims to support Georgia to “maintain and further entrench macroeconomic and financial stability [...] and achieve stronger and more inclusive growth.”
John said the programme would seek to boost public financial management and limit fiscal risks in Georgia, mostly by facilitating enhancement of state-owned enterprise governance.
Georgia’s economy has proven resilient in the past, and with the support of policies under the authorities’ program, we expect growth to pick up in 2023 and other key indicators to strengthen as well,” John said.
The three-year economic programme is scheduled to be considered by the Executive Board of the Fund in May under a Stand-By Arrangement.
The statement of the IMF mission chief also said economic growth in Georgia was expected to decrease to around three percent in 2022 due to the war in Ukraine and sanctions imposed against Russia, pointing out the expectations of rising inflation, and widening of the current account deficit.
World Bank will allocate $400 million for the Human Capital Programme for Georgia, calling it “the largest cross-sectorial investment” for the country over 30 years of partnership.
World Bank will finance the $109 million construction project for a 17-km, four-lane, access-controlled highway in the Eastern Georgia’s winemaking region of Kakheti to facilitate connection between the province and the capital Tbilisi as part of the country’s highway network.
The International Monetary Fund (IMF) projects the Georgian economy to grow 7.7% in 2021 and 5.8% in 2022, reads the latest report titled World Economic Outlook: Recovery During a Pandemic. With these indicators Georgia will have one of the highest economic growth rates in the region of the Middle East and Central Asia.
The International Monetary Fund (IMF) projects the Georgian economy to grow 7.7% in 2021, 'a significant upgrade from just a few months ago, which implies that output will exceed its 2019 level this year', reads a concluding statement of the IMF staff at the end of an official visit in Georgia.
The trend of price increases in Georgia is mainly caused by supply disruptions and record-high fuel prices, Georgian Economy Minister Levan Davitashvili said on Wednesday, calling the trend a “challenge any Government faces”.
Lasha Khutsishvili, the Georgian Finance Minister, will take part in annual meetings of the International Monetary Fund and the World Bank Group in the United States, the Ministry announced on Monday.
Questions of cooperation between the International Finance Corporation and Georgia, and the IFC’s decision to increase its portfolio for Georgia in support of the private sector in the country were discussed during a meeting between Lasha Khutsishvili, the Georgian Finance Minister, and Damien Shiels, the Acting Regional Director of the IFC on Wednesday.
Current macroeconomic parameters of Georgia, the impact of the global pandemic on the country, and trends of economic recovery were discussed by Lasha Khutsishvili, the Georgian Finance Minister, and World Bank officials on Wednesday.
The International Monetary Fund has approved a three-year $280 million Stand-By Arrangement for Georgia aimed at financial resilience and growth, the institution announced on Wednesday.
Georgian authorities have adopted a programme supported by the International Monetary Fund and focused on addressing macroeconomic challenges of the country, Bo Li, the Deputy Managing Director of the IMF said on Tuesday.
The current economic situation in Georgia was discussed on Friday in a meeting between the Georgian Prime Minister Irakli Garibashvili and James John, the Deputy Chief of the International Monetary Fund.