Georgia, IMF reach deal on $289 million macroeconomic, financial programme

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.