The Executive Board of the International Monetary Fund (IMF) approved the allocation of $ 200 million to Georgia to overcome the challenges posed by the COVID-19 pandemic. This is stated in a press release on the organization’s website.
On the eve of May 1, the IMF Executive Board completed the sixth review of the economic reform program in Georgia, implemented under the three-year agreement on the «Extended Financing Facility.» It was decided to increase total IMF support by 130% of the quota (about $ 375 million).
“The completion of the review will release 147 million SDRs (about $ 200 million) to support Georgia’s budget to meet the urgent payments and financial needs associated with the COVID-19 pandemic, including increased spending on health and social protection. The total amount of payments under this agreement is 327 million SDR (about 448 million dollars),” the statement said.
According to the IMF, the pandemic will have a significant impact on the Georgian economy, disrupting the positive economic trajectory of past years. The Fund expects that thanks to their financial support, the authorities will be able to achieve the necessary increase in spending on healthcare and the social protection system.
Georgia was one of the first countries that managed to get IMF assistance during the pandemic. In general, the government agreed with international financial institutions on packages with a direct amount of $ 3 billion.
Georgian Prime Minister Giorgi Gakharia thanked the Managing Director and the Board of Executive Directors of the International Monetary Fund. On the official Twitter page, the prime minister notes that an increase of $ 200 million in the current program by the International Monetary Fund is a significant message for international donors.
“I thank the Managing Director, the IMF Board of Executive Directors and the mission of the negotiators for completing the VI review and increasing the current program by $ 200 million. This is a significant message for international donors. Together we will defeat the invisible enemy,” wrote Gakharia on Twitter.