International Monetary Fund (IMF) is concerned about the fiscal risks of Georgia.
The issue is considered in the statement disseminated by the Fund. The Fund regards, that such risks should be managed carefully.
“Fiscal risks from government guarantees—including those to backstop power-purchase agreements to encourage hydropower investment—should be managed carefully to safeguard Georgia’s hard-earned fiscal sustainability. It is important to put in place a framework in line with best international practice to monitor, assess, and fully disclose fiscal risks from such guarantees”, – the mission’s statement notes.
To remind, IMF Mission was visiting Georgia on November 9-21. The Fund’s Mission estimated the activity on December 8 and noted, that the Mission would work on the finishing of Letter of Intent with the government. It demands agreement on preserving the independence of the bank supervision strategy, a sufficient level of foreign exchange reserves, the state obligation’s management and improving the disclosure format, boosting economic growth, structural reforms.
In the case of successful completion of the final review, the IMF’s second and third review of the program will be completed early in 2016.