Press Release: IMF Mission Reaches Staff-Level Agreement on Fourth Review Under Stand-By Arrangement with Georgia
November 13, 2009Press Release No. 09/406
November 13, 2009
An International Monetary Fund (IMF) mission, led by Mr. Edward Gardner, visited Tbilisi October 27-November 11 to hold discussions on the fourth review of the economic program supported by a Stand-By Arrangement (SBA). The SBA with Georgia was approved on September 15, 2008 (see Press Release No. 08/208) for an amount of SDR 477.1 million (about US$750 million). On August 6, 2009, the size of the financial package provided under the SBA was increased to SDR 747.1 million (about US$1,200 million) and the SBA was extended to June 14, 2011 (see Press Release No. 09/277).
At the end of the mission, Mr. Gardner issued the following statement in Tbilisi:
“The mission has reached a staff-level agreement with the authorities of Georgia on an economic policy package for 2010. The agreement reached with the authorities is subject to approval by IMF Management and the Executive Board, which is scheduled to consider the review in December 2009. Upon completion of the review, an amount of SDR 47.3 million (about US$75 million) would become available for disbursement.
“There are positive signs that an economic recovery is underway, and we project positive real GDP growth in 2010. However, the external environment is expected to improve only slowly and the recovery remains vulnerable. Faced with the dual challenge of sustaining the economic upturn and restoring sound fiscal and external positions, the authorities’ economic policy program for 2010 targets a sizeable reduction of the fiscal deficit and a continuation of structural reforms to increase the efficiency of government and enhance economic competitiveness.
“IMF financing is intended to fill the external financing gap created by the lagged recovery of private capital inflows. In all, the main objective of the SBA remains that of providing temporary financial support to facilitate policy adjustment and restore the confidence of markets and investors.”