International Monetary Fund launches $285m, 3-year program in Georgia

The International Monetary Fund (IMF) is planning to launch a three-year, $285 million technical assistance program in an effort to support economic policy in Georgia. Marking the completion of a two-week IMF mission in Georgia, Georgian Finance Minister Dimitry Kumsishvili, National Bank of Georgia (NBG) President Koba Gvenetadze and IMF officials held a press-conference to summarise the mission’s results, Agenda.ge reports.

During the two-week mission, the NBG, government of Georgia and the IMF worked on a three-year plan within the Extended Fund Facility (EFF). Authorities at the press conference today announced that an initial agreement had been reached, and that final approval is due to follow in April. "Under the program, the IMF will be our main partner in implementing the government’s economic policy. The new program is not only a declaration of full confidence in the government’s economic policy, but it is fully based on the government’s reform plan,” Kumsishvili said

The minister said the IMF was pleased with Georgia’s economic and structural reforms which aim at maintaining macroeconomic stability and boosting economic growth. "The government’s reforms are off to a successful start and the 5.2 percent economic growth experienced in January proves it. In the same month export volume increased 45 percent year-over-year (y/y); revenues from tourism increased by 25 percent y/y; money transfers increased by 26.1 percent y/y; tax revenues of the consolidated budget reached 1.31 billion in January-February – 18.6 percent more y/y. We see many positive developments from the beginning of this year, and this trend will continue,” Kumsishvili said.

Kumsishvili further added the government has several further reforms planned in order to achieve better economic growth. These reforms are: pension reform, capital market reform, creating deposit insurance system, land reform, insurance system reform amongst others.