The Executive Board of the International Monetary Fund (IMF) approved a three-year extended arrangement under the Extended Fund Facility (EFF) for Georgia for an amount of about $285.3 million to support the authorities’ economic reform program.
IMF approves $285.3 million program for Georgia
By Tea Mariamidze
Friday, April 14
Georgia’s Prime Minister, Giorgi Kvirikashvili, stated that this is a very significant program for the country.
According to him, the positive dynamic of Georgia’s economy is obvious, and fiscal and monetary indicators are very positive. He also noted that the approval of the IMF program will also be a positive signal for potential investors.
“This program is important for implementation of all the reforms that we have announced or carried out within the government’s four-point plan, especially in the field of spatial arrangement…this program means that all our plans will become a reality,” he said.
Kvirikashvili thanked the Finance Ministry team and the Minister, Dimitri Kumsishvili, for his work.
“This is a result of hard work by Minister Dimitri Kumsishvili and our economic team. The Ministry of Finance has worked very hard in this respect,” the PM added.
The EFF-supported program will help Georgia reduce economic vulnerabilities, pursue well-coordinated policies, and promote economic growth. The program includes ambitious structural reforms to generate higher and more inclusive growth, focusing on improving education; investing in infrastructure; making public administration more efficient; and improving the business environment to boost the private sector as a growth engine.
The IMF Executive Board’s approval allows for an immediate disbursement of about $40.7 million. The remaining amount will be phased over the duration of the program, subject to six semi-annual reviews.
The Deputy Managing Director of the IMF, Tao Zhang, said that the Georgian authorities have adopted an economic program aimed at promoting growth while maintaining macroeconomic stability.
However, he noted that Georgia faces several economic challenges, including a narrow production base, external and fiscal imbalances, and subdued economic growth with high unemployment.
“The authorities’ program supported by the Extended Fund Facility will help address these challenges by reducing fiscal deficits while shifting public spending toward investment, accelerating structural reforms, strengthening the monetary policy framework, and enhancing financial sector supervision, safety nets, and bank resolution frameworks,” he said.