The IMF Executive Board of the International Monetary Fund (IMF) completed today the Sixth Review of Georgia’s economic reform program supported by a three-year extended arrangement under the Extended Fund Facility (EFF). The completion of the review will release $200 million (SDR147 million) for budget support, to help Georgia meet urgent balance of payments and fiscal needs stemming from the COVID-19 pandemic, including increased spending on health services and social protection.
The pandemic is expected to have a significant impact on Georgia’s economy, interrupting the positive economic trajectory of past years. The weakened macroeconomic outlook and fiscal situation have created urgent external and fiscal financing needs. The IMF financial support will make a substantial contribution toward fulfilling the needed increases in health spending and social safety nets.
“The COVID-19 pandemic has hit the Georgian economy hard. A drop in external demand and tourism has widened the current account deficit, led to a depreciation of the exchange rate, and a substantial decline in economic activity. The authorities have acted rapidly by introducing sweeping containment measures and targeted support to households and to most affected sectors. The augmentation of access under the Extended Fund Facility arrangement should support the authorities’ policies to address the COVID-19 shock and help meet the urgent balance-of-payments need”, said Mr. Tao Zhang, IMF Deputy Managing Director and Chair.
To remind, Georgia will receive about $448 million (SDR327 million) in total under the arrangement.
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