The tranche in the amount of  USD 20.4 million allocated by the  IMF Executive Board under the third interim review of the Poverty Reduction and Growth Facility (PRGF) program has been transferred to the account of the National Bank of Georgia. This decision was made following the consideration of the progress of the program on the basis of which the policy pursued by the  Government and the National Bank of Georgia was given a positive evaluation.   At the meeting of the IMF Executive Board when considering the economic indicators it was stated that the basic trend of the Georgian authorities’ economic program for 2006 is to continue the PRGF arrangement. The process unequivocally implies maintaining macroeconomic stability and keeping inflation at  single-digit rates. The members of the Executive Board emphasized the necessity for intensifying the work on the poverty  reduction as well as the improvement of the environment for private investments, including upgrading the infrastructure and providing more reliable energy supply.   According to the  assessments of the Executive Board  members the positive tendencies are now underway in the economy of Georgia, which are facilitated  by  improving the fiscal policy and conducting monetary policy in terms of inflation control. The Georgian authorities are consistently implementing the PRGF program and structural reforms. Against the backdrop of the tax reforms the budget revenues were further increased, which enabled the authorities to increase spending on priority items.   According to the conclusion of the IMF Executive Board members the financial sector of Georgia has become more stable today. The state of banks, the regulatory body of the sector and the banking supervision regime of the National Bank of Georgia have been significantly improved. The members of the Executive Board called the year of 2005 in Georgia as the year of “Banking Boom”. Such assessment was conditioned by the indicators achieved in the monetary sphere. The amount of the loans issued to the private sector and returns on assets and on equity have increased in Georgia. Though the loans in Georgia are still issued in foreign currency, mainly in USD, the amount of the loans issued in Lari has increased threefold and dolarization of deposits has reduced.   At the meeting of the IMF Executive Board it was stated that the bankruptcy of one of the big commercial bank “Intelectbank” has been prevented as a result of the timely-implemented and proper policy of the National Bank of Georgia. According to the members of the Executive Board the banking supervision in Georgia has significantly improved and became more active and efficient.   The IMF Executive Board approved the funding program under  the PRGF  in the amount of  USD 141.2 mln on July 4, 2006.  The National Bank of Georgia received the first tranche amounting to  about USD 20 million on June 21, 2004 under the mentioned three year program. The second tranche was transferred to the NBG account on January 11, 2005, the third – on August 5, 2005 and the fourth – on April 21, 2006. PRGF loans carry an annual interest rate of 0.5 percent and are repayable over 10 years with 5½ -year grace period on principal payments.