The NBG Governor Koba Gvenetadze and the Minister of Finance Lasha Khutsishvili held a working meeting with Jihad Azour, the Director of the Middle East and Central Asia Department of the IMF.

 

The parties discussed Georgia’s current economic situation and challenges in the region, noting that high inflation remains one of the main challenges. The IMF gave positive assessment to the actions taken by the National Bank of Georgia to reduce inflation. A significant reduction in the fiscal deficit this year, which should help reduce inflation, was also commended.

 

"Inflation remains the main challenge, and while the uncertainty persists, the National Bank of Georgia will stick to the tighter monetary policy. The financial sector in Georgia is sound. The appropriate measures taken by the regulator before the pandemic allowed the sector to cushion the adverse impact of the current shocks on the economy. The NBG continues to monitor the compliance with the sanctions in the financial sector imposed by the US, Great Britain and European Union against the Russian Federation", Koba Gvenetadze said.

 

The discussion also covered the importance of the arrangement approved by the Executive Board of the IMF and the economic reforms that it entails.

 

"The world is facing difficult challenges and global inflation will continue to be high in the near future. It is also noteworthy that global economy, which is projected to be half of what was last year, will shrink further next year due to the tightening financial situation," said Jihad Azour, the Director of the Middle East and Central Asia Department of the IMF. He once again underscored the importance of the monetary policy measures of the National Bank of Georgia, as well as the role of the flexible exchange rate in terms of mitigating the shocks. It is important to continue structural reforms in the country, Jihad Azour added.

 

The meeting with the Director of the Middle East and Central Asia Department of the IMF was attended by the representatives of the Ministry of Finance and the National Bank of Georgia.