The Executive Board of the International  Monetary Fund  approved the  release of the next tranche  for an amount equivalent to SDR  14 million  (about  US$ 20,2  million) on July 20, 2005 under the Second Interim Review of the Poverty Reduction and Growth Facility (PRGF).   At the meeting of the Executive Board of the International Monetary Fund the Memorandum of the Georgian Government about the “Financial Economic Policy” was discussed and the policy implemented by the Georgian Government and the National Bank of Georgia was approved. The Executive Board assured the Georgian Government and the National Bank of Georgia of its support of the measures to be taken during the rest of 2005.   Georgia’s Economy has continued  to develop  successfully. The main goal of the economic program of the Georgian Authority is to keep inflation at single-digit rates till the end of 2005 in order to enhance the macroeconomic stability. The Government also will  continue to pursue the reforms  to ensure the economic growth and alleviate  poverty. It  plans  to institutionalize  and  further strengthen  its anti-corruption strategy.   “In the future higher government spending against the backdrop of sizable capital inflows will require  coordination  between fiscal and monetary authorities. To ensure low inflation the government intends to maintain  a careful approach to the spending policy.. If  inflationary pressures intensify  the National Bank of Georgia  should  stand ready to tighten the monetary policy  beyond the  limits  envisaged in the program”,  Mr. T. Kato said at the meeting of  the Executive Board.   By  Mr. Kato’s estimate,  The  tax reforms that took effect in January, 2005  on the back of impressive  revenue gains  in 2004, has contributed to improving of the business climate. According to him  the receipts from an accelerated privatization have enabled the government  to finance the government  priority programs  without endangering the fiscal sustainability. The Georgian Authority has also made a considerable progress in carrying out structural reforms including in revenue administration and the promotion of transparency in  government operations. Besides, simplification of  licenses and  permits to facilitate the private sector activities can be considered as a positive outcome.   In the future it is important that  the Parliament of Georgia should make amendments to the Budget Systems Law and implement liberalization of  the external trade regime said the deputy of the IMF Managing Director.   The IMF PRGF arrangement – SDR 98 million (about  US$ 141, 6 million) was approved on June 4, 2004.  The National Bank of Georgia received the first tranche in the amount of SDR 14 million on June 21, 2004 under the mentioned three – year program. The second tranche in the amount of SDR 14 million ( US$ 21, 5) was transferred to the NBG account on January 11, 2005. The PRGF  is repayable over 10 years, with  interest rate of 0, 5% and with a grace period of 5.5 years. The mentioned resources are used for replenishing the international monetary reserves of the National Bank of Georgia. The sizet of these reserves  amounted  to  US$ 424.3 million by July 20, 2005.