The International Monetary Fund (IMF) approved a US$280 million Stand-By Arrangement for Georgia which provides support for the authorities’ economic policies over the next three years. In this context, the IMF published a report, which covers the country’s economic situation and current developments in the region.

 

The document discusses the measures taken during the global pandemic. According to the report, the implemented policies supported the recovery from the COVID-19. Additionally, the report underscores the consequences of Russia's full scale war in Ukraine. "Strong financial supervision leading up to the crisis and the NBG’s prompt supervisory actions ensured that banks were able to offer borrowers temporary payment holidays, while still providing credit to the economy. The authorities facilitated the unwinding of operations of VTB Georgia, which faced deposit pressures due to sanctions. Assets and liabilities were transferred to two other smaller banks and spillovers to the broader financial system were avoided. The NBG has required banks to adhere to sanctions, which has limited risks," – states the report.

 

Furthermore, the report commends the actions of the NBG with regards to inflation. "While inflationary pressures have been high globally, the NBG is strongly committed to its inflation target," – says the report.

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