Irakli Kovzanadze, the former chairman of the Finance and Budget Committee of the Parliament declares, that both, the IMF and the government should show flexibility regarding the restoration of the International Monetary Fund program. Kovzanadze urges the parties to hold dialogues and take compromise steps.
"Today, I think there are certain conditions regarding the restoration of the program. I think, the Fund, as well as the parties participating in the program, can show some flexibility in this regard. The recipient of the program is both the Ministry of Finance and the National Bank.
We have adjusted the macroeconomic parameters, the budget deficit came down from 9% to 3%. The budget parameters are in order. There are still issues related to the National Bank, but it is possible to reach compromises to restore the program," said Irakli Kovzanadze.
On October 4, the IMF has said that the IMF-supported stand-by arrangement with Georgia is delayed rather than suspended. According to the IMF, the approval of the second review has been delayed due to the IMF’s disapproval of the change in the management structure and the recent decision on amendments to the sanctions regulations of the National Bank of Georgia (NBG).
On September 19, the National Bank of Georgia announced that by the decision of the Bank’s Acting President, international sanctions will not apply to a Georgian citizen who has not been found guilty by a Georgian court. With this change, the National Bank of Georgia reversed its prior decision and restored access to bank assets and the right to carry out financial transactions to Otar Partskhaladze, after he was sanctioned by the United States Treasury Department.
