World Bank to support Georgian reforms with $40 million loan

The World Bank (WB) will provide Georgia with a loan worth $40 million
as part of the Third Development Policy Operation (DPO-3) for economic
reforms, Business Georgia reports.

This is the third and final loan within the program. Georgia has
received a total of $175 million since the war with Russia in August
2008.

The program is aimed at economic growth, improvement of fiscal and
macroeconomic indicators, increase of state income, improvement of
efficiency of expenses, social support and competitorship.

Regional Director of the WB for South Caucasus Asad Alam said that the
loans contributed to economic restoration of Georgia in 2010-2011.
They provided medical insurance for 900,00 people and specialized
medical support for 440,000.

DPO-3 is a loan of the Membership Action Plan (MAP) for 25 years with
a beneficial period of 5 years.

The first loan was worth $85 million and was provided in July 2009 to
ease repercussions of the economic recessions.

The second loan was provided by the MAP worth $40 million and the
International Bank for Reconstruction and Development worth $10
million. The MAP loan was provided for 20 years with a beneficial
period of 10, the IBRD loan was for 27 years with a beneficial period
of 8.

The loan program is one of the main components for cooperation of
Georgia and the WB in 2010-2013. Georgia will receive a total of about
$1.5 billion for 50 projects.