{
  "title": "Press Release: IMF Executive Board Approves US$750 Million Stand-By Arrangement for Georgia",
  "publication": "IMF News, September 15, 2008",
  "sourceUrl": "https://www.imf.org/en/news/articles/2015/09/14/01/49/pr08208",
  "canonical": "https://www.imf.org/en/news/articles/2015/09/14/01/49/pr08208",
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  "summary": "The Executive Board approved an 18-month Stand-By Arrangement (SBA) with total access equivalent to SDR 477.1 million (about US$750 million).",
  "publishDate": "2008-09-15",
  "sections": [
    {
      "heading": "Executive Board approval and arrangement terms",
      "content": "- The Executive Board approved an 18-month Stand-By Arrangement (SBA) with total access equivalent to SDR 477.1 million (about US$750 million).\n- The SBA involves exceptional access as it would exceed limits of 100 percent of Georgia's IMF quota annually and 300 percent of the quota (net of scheduled repurchases) cumulatively.\n- Disbursement schedule:\n  - An amount equivalent to SDR 161.7 million (US$250 million) will be made available immediately.\n  - The remaining balance will be distributed in six installments over the next 18 months."
    },
    {
      "heading": "Program objectives and context",
      "content": "- Primary aims:\n  - Rebuild gross international reserves.\n  - Bolster investor confidence to sustain private capital inflows that previously financed growth.\n  - Limit deterioration in the external accounts.\n- Context:\n  - The program responds to pressures following the early-August armed conflict: decline in international reserves, fall in bank deposits, and increased Eurobond spreads.\n  - Georgia is expected to receive additional financial assistance from multilateral and bilateral donors and creditors for reconstruction."
    },
    {
      "heading": "Fiscal policy stance and financing",
      "content": "- Fiscal strategy:\n  - Reduce current spending to free resources for relief and reconstruction.\n  - Accommodate concessional loans and grants from multilateral and bilateral partners within the program's fiscal targets.\n- Currently available financing for 2008-09 comprises:\n  - The proceeds of the $500 million Eurobond issued this year.\n  - Privatization receipts.\n  - Donors' support for reconstruction.\n- Program fiscal objectives (selected indicators in percent of GDP):\n  - Revenue: 26.7 (2006), 29.2 (2007), 27.7 (2008), 26.0 (2009).\n  - Expenses: 20.8 (2006), 25.0 (2007), 26.6 (2008), 23.1 (2009).\n  - Operational balance / Capital spending and net lending / Total balance: 9.0; 7.3; 6.7; (presented in table format in source) and Total balance: -3.0 (2006), -4.7 (2007), -6.3 (2008), -3.8 (2009).\n  - Total financing (program definition): 3.0 (2006), 4.5 (2007).\n  - Domestic financing: -1.7 (2006), -0.9 (2007), 1.3 (2008), -0.3 (2009).\n  - External financing: -0.4 (2006), 1.5 (2007), 3.1 (2008).\n  - Privatization receipts: 5.2 (2006), 3.2 (2007), 0.9 (2008)."
    },
    {
      "heading": "Monetary policy and financial sector measures",
      "content": "- Monetary stance:\n  - Focus on providing sufficient liquidity to the banking system while maintaining a stable exchange rate and an adequate level of international reserves.\n  - Program supports short-term policy of avoiding excessive exchange rate volatility and envisages a return to a flexible exchange rate regime.\n- Financial sector measures:\n  - Strengthen framework for managing liquidity.\n  - Build up capacity and strengthen independence of the Financial Supervision Agency (FSA).\n  - Enhance cooperation between the FSA and the central bank.\n  - Supervisory authorities will work with banks to assess vulnerabilities and mitigate risks."
    },
    {
      "heading": "Economic impact, vulnerabilities, and recovery prospects (Annex summary)",
      "content": "- Pre-conflict performance:\n  - Economic growth reached double digits; inflation around 10 percent.\n  - External current account deficit reached 20 percent of GDP in 2007 and was fully financed by private capital inflows, in particular foreign direct investment.\n- Conflict impact:\n  - Pressures on the capital account led to a decline in international reserves, a fall in bank deposits, and increased Eurobond spreads.\n- Recovery prospects:\n  - The economy is described as well placed to recover due to an impressive record of adjustment and reform that strengthened economic structure and resilience."
    },
    {
      "heading": "Selected macroeconomic indicators, 2006-09 (as presented)",
      "content": "- National accounts (annual percentage change, unless otherwise indicated):\n  - Real GDP growth: 9.4 (2006 Act.), 12.4 (2007 Prel.), 3.5 (2008 Proj.), 4.0 (2009 Proj.).\n  - Population (million) 1/: 4.3 (2006), 4.4 (2007).\n  - Consumer price index, period average: 9.2 (2006), 10.0 (2007), 7.6 (2008).\n  - Consumer price index, end-of-period: 8.8 (2006), 11.0 (2007), 8.0 (2008).\n  - GDP per capita (US$): 1,800 (2006), 2,324 (2007), 2,895 (2008), 3,167 (2009).\n  - Poverty rate (in percent): 31.0 (2006), ...\n  - Unemployment rate (in percent): 13.6 (2006), 13.3 (2007).\n- Investment and saving (in percent of GDP):\n  - Investment: 25.6 (2006), 28.1 (2007), 23.7 (2008), 22.2 (2009).\n  - Public investment: 2.5 (2006), 3.4 (2007), 3.6 (2008), 5.6 (2009).\n  - Private investment: 23.0 (2006), 24.7 (2007), 20.1 (2008), 16.6 (2009).\n  - Gross national saving: 9.7 (2006), 8.1 (2007), 2.9 (2008), 5.9 (2009).\n  - Saving-investment balance: -15.9 (2006), -20.0 (2007), -20.8 (2008), -18.7 (2009).\n- Monetary sector:\n  - Reserve money: 19.2 (2006), 19.0 (2007), 12.0 (2008).\n  - Broad money (including foreign exch. deposits): 39.3 (2006), 49.6 (2007), 14.0 (2008), 18.0 (2009).\n  - Private credit: 53.4 (2006), 68.9 (2007), 21.2 (2008), 15.2 (2009).\n- External sector:\n  - Exports of goods and services (percent of GDP): 33.1 (2006), 31.7 (2007), 27.6 (2008).\n  - Exports annual percentage change: 17.6 (2006), 26.1 (2007), 13.1 (2008), 11.5 (2009).\n  - Imports of goods and services (percent of GDP): 56.8 (2006), 57.8 (2007), 52.9 (2008), 33.0 (2009).\n  - Imports annual percentage change: 34.0 (2006), 20.0 (2007), 4.1 (2008).\n  - Current account balance (in millions of US$): -1,235 (2006), -2,047 (2007), -2,757 (2008), -2,618 (2009).\n  - Current account balance (in percent of GDP): (table includes values aligned with above current account series).\n  - Gross international reserves (in millions of US$): 881 (2006), 1,361 (2007), 1,270 (2008), 1,755 (2009).\n  - Reserves in months of next year's imports of goods and services: 1.8 (2006), 2.3 (2007), 2.1 (2008), 2.6 (2009).\n  - Foreign direct investment (percent of GDP): 13.9 (2006), 15.3 (2007), 9.3 (2008), 8.6 (2009).\n\nPress Release No. 08/208, September 15, 2008.\n\n---\n\n\n References\n\n- Georgia and the IMF\n- Press Releases\n- Video summary:\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr08208"
    }
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    "Published: September 15, 2008",
    "The Executive Board approved an 18-month Stand-By Arrangement (SBA) with total access equivalent to SDR 477.1 million (about US$750 million).",
    "The SBA involves exceptional access as it would exceed limits of 100 percent of Georgia's IMF quota annually and 300 percent of the quota (net of scheduled repurchases) cumulatively.",
    "Disbursement schedule:",
    "Primary aims:",
    "Context:",
    "Fiscal strategy:",
    "Currently available financing for 2008-09 comprises:",
    "Program fiscal objectives (selected indicators in percent of GDP):",
    "Monetary stance:",
    "Financial sector measures:",
    "Pre-conflict performance:",
    "Conflict impact:",
    "Recovery prospects:",
    "National accounts (annual percentage change, unless otherwise indicated):",
    "Investment and saving (in percent of GDP):",
    "Monetary sector:",
    "External sector:",
    "[Georgia and the IMF](http://www.imf.org/external/country/GEO/index.htm)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[Video summary:](https://www.imf.org/external/mmedia/view.asp?eventID=1227)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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