International Monetary Fund (IMF) plans to launch a 3-year program of 285 million USD in Georgia, IMF Mission head Mercedes Vera Martins told reporters as part of a joint briefing with Minister of Finance Dimitri Kumsishvili and President of National Bank of Georgia (NBG) Koba Gvenetadze.
The program will foster and strengthen NBG reserves. The program inauguration will give a positive signal to investors, Koba Gvenetadze said.
“I am happy that today we notify you about an achieved agreement on inauguration of a 3-year program that was developed by our government and will be implemented by IMF support. This is a EFF program that, as a rule, is allocated to countries with short-term problems in payment balance. As part of the mentioned program, NBG will receive about 285 million USD for 3 years so as NBG strengthen and grow reserves, because stronger positions of NBG reserves enhances steadiness of the country to shocks. Moreover, investment inflows and macroeconomic stability also grow.
IMF program implementation provides a positive signal for potential investors, both foreign and domestic investors. These program proves that Government of Georgia carries out positive and good macroeconomic policy that provides additional stimulus for making foreign direct investments in the country.
We also plan to sign a memorandum between Ministry of Finance and NBG on liquidity forecasting to become able to forecast liquidity and lower liquidity risks.
Moreover, we make focus on development of securities and capital markets. To be precise, for the purpose of development of secondary securities market, we have developed a strategy for capital market development. We have been implementing all components of the strategy step by step.
As to finance sector, the planned measures are directed to improving stability of financial system to promote establishment of healthy standards and restrict growth in debts in the system. Moreover, we plan to implement measures in various directions, including growth in minimal capital for banks. Today this indicator is the lowest in Georgia and this step will make signal that financially strong institutions will be able to carry out banking activities in Georgia”, NBG President Koba Gvenetadze noted.