16.Sep .2020 12:14

“Lowering the policy rate by the NBG has been correct” - Ms. Mercedes Vera-Martin

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“The National Bank of Georgia (NBG) has also taken several measures to support economic activity and financial stability, including lowering the policy rate. At the onset of the COVID-19 shock, the NBG eased capital and regulatory requirements, provided lari and FX liquidity, and preemptively requested additional provisioning for banks. In response to declining economic activity and easing inflation pressures, the NBG appropriately reduced its policy rate. Maintaining exchange rate flexibility remains essential to manage the shock.

We are grateful for the authorities open and constructive discussions during the visit. The team met with Governor of the National Bank Gvenetadze, Minister of Finance Matchavariani, other senior officials, and representatives of the private sector. We look forward to continuing the dialogue during the October mission for the seventh review of Georgia’s economic reform program supported by the IMF”, Ms. Vera-Martin noted.

To remind, An International Monetary Fund (IMF) team, led by Ms. Mercedes Vera-Martin, held virtual meetings during September 8-14, 2020, to discuss recent economic and financial developments and progress with the structural reforms.