IMF approves $113.9 mln to support Georgia amid pandemic

IMF approves $113.9 mln to support Georgia amid pandemic

The International Monetary Fund (IMF) Executive Board has completed the Seventh Review of Georgia’s economic reform programme supported by a four-year extended arrangement under Extended Fund Facility (EFF) and approved a disbursement of $113.9 million to help the Georgian economy amid Covid-19 shocks.

"Georgia faces a pronounced economic slowdown due to the COVID-19 pandemic. Despite the successful containment of the first wave of the pandemic, the recent rise in cases has required new measures that could weaken the recovery. Risks are large and mostly to the downside," IMF Deputy Managing Director and Chair Tao Zhang said.

He noted that the National Bank of Georgia has appropriately maintained a moderately tight monetary stance to anchor inflation expectations, while safeguarding the exchange rate flexibility.

Zhang also said that the fiscal response to the pandemic has helped alleviate its adverse economic and social impact, with higher healthcare spending, targeted and temporary support to households and businesses, and sustained public investment.

He noted that the decisive implementation of structural reforms is critical to support the recovery and limit scarring from the COVID-19 shock.

After the allocation of $113.9 million, total disbursements for Georgia under the programme will be amounted to $585.4 million.

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