Roman Gotsiridze, President of the National Bank of Georgia, met with the IMF Mission on June 2, headed by Julian Berengaut, deputy director of Middle East and Asia Department. Monetary and exchange policies of Georgia were discussed at the meeting. We wish to bring positive information about Georgia to the Board of Directors of the IMF in Washington DC,” said Julian Berengaut.The IMF Board of Directors will review the allocation of the next tranche under the PRGF arrangement supposedly in September. By that time, the IMF Mission will assess the performance of the program parameters by the government and the Bank. The Bank has to ensure the stability of the exchange rate of lari and reasonable growth of reserve money. The IMF loans are aimed at filling up the international foreign exchange reserves of the National Bank. By the end of the current year, their volume will grow to about half a billion US dollars, President Gotsiridze said.The IMF Mission head expressed his view regarding the spending of privatization revenues. Close cooperation between the government and the central bank is a necessary precondition for low inflation and stability of the national currency, the Mission head said. The National Bank president stated that the schedule of spending these funds has to be agreed with the Bank by the Ministry of Finance. The PRGF program is being implemented in 32 countries. The program for Georgia, with the total value of 98 million SDR’s, was approved on June 4 of the last year, and is expected to be completed at June 3, 2007. The Bank received the first tranche under the arrangement 14 million SDR’s on June 21, 2004. The second tranche of 14 million SDR’s (USD 21.5 million) was transferred to the National Bank account on December 28. The third 14 million SDR tranche is expected to be received by the year-end.