The Deputy Prime Minister and Minister of Economy and Sustainable Development of Georgia, Giorgi Kvirikashvili, said that the government plans to reduce administrative costs by approximately 12% under a policy of belt-tightening.
"Belt tightening is the first step, when you see how people have suffered as a result of changes in the exchange rate of the GEL" Interfax cited him. In this situation, according to Kvirikashvili, the government is obliged to reduce administrative costs. The ministry will introduce a detailed plan of cuts next week. It is expected that it will be equal to the amount of the devaluation of the GEL - 12%.
The Ministry of Economy and Sustainable Development is also going to intensify the process of privatization. As an example, Kvirikashvili named several objects, including a thermal power plant. Representatives of the department will meet the mission of the International Monetary Fund next week.
During the meetings, they should agree on the level of the budget deficit and consider the possibility of attracting additional loans from international financial institutions for the implementation of infrastructure projects in the country.
