Finance minister: IMF partnership "particularly important" amid Ukraine conflict challenges

Georgian finance minister Lasha Khutsishvili on Monday said the country’s partnership with the International Monetary Fund was "particularly important" in light of "current challenges" created by the conflict in Ukraine. 

Khutsishvili made the remark at a press briefing with James John, the head of the IMF team, who today summarised the fund mission's visit to Georgia that started on October 26 and concluded on Monday, the ministry said.

Georgian authorities and the IMF have reached a staff-level agreement on policies for completion of the first review of the stand-by arrangement following "productive discussions" between the sides, which will allow the organisation to allocate $38 million for the country.

• IMF to approve $38mln after first review of stand-by arrangement for Georgia

Khutsishvili announced an agreement had been reached with the IMF mission regarding the scheme of supporting renewable energy, while the ministry also said the sides had agreed visions on reform of state enterprises of the country.

We will continue to work on structural reforms, thereby ensuring greater economic resilience to global challenges. In the medium term, we will continue to work to maintain fiscal stability, and in this regard, the programme with the fund is an additional guarantee on the way to achieving our strategic goals, including energy security and energy independence as well as transit and logistics infrastructure [development]", Khutsishvili said.

Khutsishvili said the Georgian economy was characterised by "sustainable recovery" in the post-pandemic period.

Also, the year 2022 started with positive trends [...] Against the background of global and regional challenges caused by the ongoing war in Ukraine, as a result of the sanctions imposed on Russia, certain changes and transit corridors have shifted to the south, which naturally has a positive effect on the economy of Georgia", Khutsishvili said.

John said the Georgian economy had "performed strongly in 2022 as adverse spillovers from the war in Ukraine thus far have generally been less impactful than expected earlier".