IMF makes $40 mln available for Georgia after Mission Head visit
The International Monetary Fund announced the completion of the second review under the Stand-By Arrangement with Georgia, with the process making about $40 million in support available to the country. Photo: Nino Alavidze/Agenda.ge
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The International Monetary Fund on Thursday announced the completion of the second review under the Stand-By Arrangement with Georgia, with the process making about $40 million in support available to the country.
The approval came during a visit to Georgia of the IMF Mission Head James John, who noted “productive discussions” with the Georgian authorities.
The Fund said the Georgian economy continued to “perform strongly, driven by robust tourism, transit trade, and financial inflows triggered by Russia’s war in Ukraine, and supported by prudent macroeconomic policies”.
In his own comments, John said the country’s economy had “performed strongly since the pandemic, reflecting limited adverse spillovers from Russia’s war in Ukraine and prudent macroeconomic policies”.
Buoyant tourism and a surge in immigration, financial inflows, and transit trade triggered by the war in Ukraine have boosted growth and fiscal revenues, and strengthened the current account balance and the lari”, he pointed out.
The IMF representative also shared the institution’s estimations that said the domestic economic growth was projected to “converge to its potential rate of a little above five percent in 2023”, while inflation would remain below the National Bank of Georgia’s three percent target.
Over the medium term, growth is expected to remain close to potential, supported by infrastructure investments and an expected improvement in global economic and financial conditions. Inflation is forecast to be close to target in 2024”, he said.
In recommendations, John noted policies should remain focused on rebuilding fiscal and foreign exchange buffers and maintaining reform momentum to further entrench macroeconomic and financial stability and support inclusive growth, given “high uncertainty especially in the external environment”.
He also welcomed the Georgian Government’s efforts in fulfilling recommendations of structural reforms in the areas of tax policy and administration, public investment management, fiscal risks, NBG communications and financial supervision.
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.
Georgian Economy Minister Levan Davitashvili on Friday met International Monetary Fund mission head James John to assess the country’s compliance with the terms of a $40 million standby loan issued by the IMF.
A delegation from the International Monetary Fund is visiting Georgia to discuss the country’s economic outlook with Government officials.
The progress of the reforms implemented in Georgia with the International Monetary Fund’s support, as well as the current economic situation in the country, was reviewed on Thursday by the Georgian Finance Minister Lasha Khutsishvili and James John, the Deputy Chief of the IMF.
James John, the Mission Head of the International Monetary Fund, on Thursday told Georgian media the country’s Government and central bank were making “satisfactory efforts” to comply with the international sanctions placed on Russia for its invasion of Ukraine.
Georgian Finance Minister Lasha Khutsishvili on Thursday welcomed an increase in the International Monetary Fund’s estimation of 2023 economic growth for Georgia to five percent, and the institution’s allocation of about $40 million in support of the country.
Archil Mestvirishvili, the Vice President of the National Bank of Georgia, on Thursday said the domestic financial sector was ensuring enforcement of the international sanctions on Russia for its invasion of Ukraine “very well”.
Archil Mestvirishvili, the Acting President and Vice President of the National Bank of Georgia, on Wednesday said evaluations of Georgia's investment environment by international rating agencies boosted investors' and foreign organisations' confidence in the domestic economy.
Natia Turnava, the Acting President of the National Bank of Georgia, on Thursday discussed macroeconomic trends in the country at an introductory meeting with Andrew Jewell, the new representative of the International Monetary Fund in the country.