Agreements Signed between World Bank and the Georgian Government

On 22 May, two financial agreements were signed between the World Bank and the Georgian Government at the Ministry of Finance of Georgia. The agreements imply that the IBRD (International Bank for Reconstruction and Development) loan of $120 million USD used to promote the Programmatic Private Sector Competitiveness Development Policy, as well as the Software Development Policy of Inclusive Growth in Georgia.

The agreement was signed by Nodar Khaduri, Minister of Finance of Georgia and World Bank Regional Director for the South Caucasus Henry Kerali. The signing ceremony was also attended by Irma Kavtaradze, Deputy Minister of Economy and Sustainable Development of Georgia.

“As a result of negotiations conducted with the World Bank, we will be able to implement reforms in various fields in Georgia that involve the creation of Investors Council that will promote more active co-operation between business and the state, as well as establishment of framework law for small and medium-sized enterprises and increase of financial accessibility. The laws concerning the capital market and deposit insurance, as well as elaboration of current law in standardization and accreditation fields are developing,” Irma Kavtaradze said.

According to her, Georgia's Innovation and Technology Agency and Entrepreneurship Development Agency at the Ministry of Economy and Sustainable Development of Georgia are working actively to establish modern technologies in Georgia and to launch new enterprises that will promote economic development, strengthening of business sector and employment of the country.

“The signed agreements will promote implementing of ongoing reforms in private and public sectors. The process of events implementation has already been started in the both directions. As you know, reforms are carried out in the directions of public finance governance, health protection, bond market development, perfection of buying system etc. Thus, the fact that the World Bank continues supporting our country in terms of successful implementation of the above-mentioned reforms is very important,” Nodar Khaduri, Minister of Finance of Georgia said.

According to the information provided by the Ministry of Finance of Georgia, the Programmatic Private Sector Competitiveness Development Policy aims at raising competitiveness of private sector in Georgia, development of financial sector and increase of export opportunities.

The Software Development Policy of Inclusive Growth in Georgia aims at strengthening the fiscal control of state offices, improvement of budgetary planning and reform of civil service system, promotion of efficiency of social costs.

The priorities implied by the both agreements are in accordance with the co-operation strategy of 2014-2017 between the World Bank and Georgia and corresponds to the social-economic development strategy of the government “Georgia 2020”. (Ministry of Economy)