Georgian authorities' IMF-supported programme to address macroeconomic stability
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. Photo: Nino Alavidze/Agenda.ge
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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.
Li said the IMF’s new three-year, $280 million Stand-by Arrangement would be treated by authorities "as precautionary", with the programme aiming to rebuild fiscal buffers while reducing debt and “protecting the vulnerable”.
The authorities recognise the importance of adhering to the fiscal rule to anchor policy credibility, and are targeting full compliance with the fiscal rule’s deficit ceiling by 2023", Li said.
He added strengthening public financial management and reforming state-owned enterprises would also help to mitigate fiscal risks.
Praising the monetary policy of the National Bank of Georgia, which he said was focused on "bringing down high inflation", Li still warned that "given Georgia’s vulnerability to spillovers from the war in Ukraine" he expected inflation to increase and the current account deficit to widen.
The authorities are committed to maintaining exchange rate flexibility, strengthening reserves, and enhancing the central bank’s communication strategy. They have managed the initial impact of sanctions, with the central bank requiring banks to adhere to international sanctions, which has limited risks. The authorities have made commendable progress on enhancing financial sector regulation and supervision, aiding financial sector resilience to recent shocks", he said.
Li concluded that "a sound financial sector along with sustained strong macroeconomic policy implementation" would help reduce dollarisation, while a reinvigorated structural reform agenda would contribute to ensuring “stronger and more inclusive” growth.
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.
Investment environment in Georgia, the current economic processes in the country, dynamics of economic recovery in the post-pandemic period and specific measures planned by the Government were discussed on Monday in a meeting between the Georgian Prime Minister Irakli Garibashvili and Kristalina Georgieva, the Managing Director of the International Monetary Fund.
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.
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.
An economic team of the Georgian Government and the Governor of the National Bank of Georgia on Wednesday discussed cooperation with the International Monetary Fund in a meeting with Jihad Azour, the Director of the Fund’s Middle East and Central Asia Department.
Georgian Prime Minister Irakli Garibashvili on Wednesday met Jihad Azour, the Director of the Middle East and Central Asia Department of the International Monetary Fund, to review the Fund’s new three-year, $280 million Stand-by Arrangement that aims to “further strengthen” microeconomic stability in Georgia.
The economic trends of Georgia, current and future reforms, as well as macroeconomic indicators and forecasts, were discussed on Friday by the Georgian economy minister Levan Davitashvili and James John, the mission chief of the International Monetary Fund.
Economic trends of Georgia, reforms and macroeconomic indicators of the country were discussed on Monday in a meeting between the Georgian Finance Minister Lasha Khutsishvili and James John, the Mission Chief of the International Monetary Fund.
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.