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IMF gives Georgia new USD 387 million loan

by | Mar 29, 2012

TBILISI, DFWatch – The International Monetary Fund will support the Georgian government’s economic and finance program of 2012-2013 with USD 387 000 000.

Edward Gardner, IMF Senior Resident Representative in Georgia, said on Wednesday that an agreement has been achieved between the Fund and the Georgian government to start a new 24-month program.

On the level of mission this agreement will be presented to IMF Executive Directors on April 11 for approval.

The government will use the allocated money when it deems necessary.

Gardner explains that this program is a logical continuation of the 33-months economy supporting program, which ended on June 14 2011. Georgia received USD 893 million from IMF within the frames of the previous program.

He says the main goals of program which ended in June 2011, are mainly achieved: stabilization of the economy, economic growth, fiscal adjustment and managing to attract private capital.

Results of 2011 are better than expected, he notes. Economic growth amounted to seven per cent, while inflation was lower and simple. Government debt doesn’t exceed 34 per cent of GDP and the country’s international reserves of are more than USD 2.8 million.

However, despite all these achievements, the country still faces challenges related to the current instable economic situation in the world.

Despite the risks, the prognosis for Georgia’s economic growth is six per cent and in case of a worsening foreign economic and financial situation, Georgia still will be able to use money foreseen by the above mentioned program, Gardner remarks.

The goal of the new program is to increase fiscal reserves; improve balance, and restore market confidence, as a catalyst for the country to attract financial resources from different sources. The medium-term challenge for Georgia still remains balance of payments and to reduce unemployment, Gardner adds.



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