Georgia and the International Monetary Fund Mission concluded an agreement on a three-year standby arrangement. The Fund-supported arrangement is subject to approval by the IMF Executive Board, which is expected to consider it in May 2022.

 

The authorities’ program would help Georgia maintain and further entrench macroeconomic and financial stability and achieve stronger and more inclusive growth. Once the program is approved, Georgia will be able to receive approximately USD 289 million over the next three years, as needed.

 

Koba Gvenetadze, Governor of the National Bank of Georgia, assessed the agreement favorably, noting that the International Monetary Fund Mission is unequivocally positive about the monetary policy pursued by the National Bank.

 

According to the IMF, the National Bank of Georgia continues to be appropriately focused on bringing inflation to target.

 

“Georgia’s financial sector has shown considerable resilience to the pandemic and the war in Ukraine, reflecting a robust supervisory and regulatory framework including the introduction and recalibration of macroprudential measures. Quick and appropriate NBG action has helped limit the impact of the war on the region’s economy, including by requiring banks to adhere to relevant sanctions,” Koba Gvenetadze said.

 

Koba Gvenetadze thanked the IMF Mission for their work, noting that the Fund support has acquired even greater and special significance today, as Russia's invasion of Ukraine and subsequent warfare have posed new challenges to the world economy in post-pandemic recovery.