IMF approves $280mln stand-by arrangement for Georgia

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.

The programme focuses on rebuilding fiscal buffers, strengthening fiscal frameworks, reducing external vulnerabilities and inflation, maintaining financial sector resilience, and fostering stronger and more inclusive growth for the country. 

The Executive Board of the IMF decided to make about $40 million of the package available immediately. 

The Georgian authorities intend to treat the new arrangement as precautionary", a release published by the IMF said.

The Georgian Ministry of Finance explained the Stand-By Arrangement was a “buffer amount of money which will be used in case of need” as an insurance mechanism for the country’s economy.