18.Mar .2020 18:33

IMF ready to help Georgia overcome coronavirus crisis

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The International Monetary Fund (IMF) is committed to providing support to Georgia under the challenging and uncertain circumstances due to the coronavirus, said IMF Resident Representative in Georgia Selim Cakir.

Georgia asked the IMF to increase the funding for Georgia in the framework of the Extended Fund Facility (EFF) programme which was extended by one year in December 2019 until April 2021.

As the IMF welcomes the authorities timely and decisive actions in monitoring, containing and mitigating the effects of the coronavirus…the number one priority in terms of fiscal response is ensuring front line health related spending to protect people’s well-being, taking care of the sick and slowing the spread of the virus,” said Cakir.

Cakir noted that the IMF and Georgia are working together to assess the economic shock resulting from the new coronavirus and offset its negative economic impact of the pandemic.

Finance Minister Ivane Javahishvili noted that the hit of the virus will mostly be on tourism and it will also affect the Georgian economy as it is significantly dependent on tourism.

He also noted that a global decrease in oil prices will have a negative effect on the Georgian economy. But he also noted that Georgian government and the National Bank of Georgia will use all financial instruments to mitigate the effect of economic challenges due to coronavirus.

Matchavariani also said that besides the IMF, Georgia is negotiating with other financial institutions to allocate funding to offset negative effects of the virus on Georgian economy.