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IMF to Publish the Review on Georgian Economy for July

IMF to Publish the Review on Georgian Economy for July

International Monetary Fund (IMF) has announced to publish Georgian Economy Assessment July 2016.

According to IMF, the latest such consultation took place in July 2013, and an update is planned for July 2016. In 2014, the IMF also updated its Financial System Stability Assessment (FSAP) of Georgia. The Fund notes in the final report, that Faced by a regional slow-down and currency depreciations, Georgia is experiencing lower exports and remittances, a widening current account deficit, weaker growth, lower fiscal revenues, and depreciation against the dollar.

According to the Fund, the challenge is how to contain external vulnerabilities, while providing support to the economy and ensuring continued financial sector stability. The IMF regularly makes broader assessments of the economy under its Article IV consultations. The latest such consultation took place in July 2013, and an update is planned for July 2016.

The IMF also provides technical assistance to Georgia on a wide range of topics. These include National Accounts Statistics, Public Financial Management, Revenue Administration, Tax Policy, and Inflation Targeting.

“Guaranteeing social assistance to the poor and vulnerable during the slowdown is essential”, – the IMF declares.

To remind, the IMF’s Executive Board approved a 36-month Stand-By Arrangement (SBA) on July 30, 2014. Under the program, Georgia has access to IMF credits of up to SDR 100 million (47.5 percent of quota), of which SDR 80 million have already been disbursed. Performance under the program is monitored through semi-annual reviews. discussions for the Second and Third Reviews are ongoing.

However, several issues are not yet set with the IMF, including separation of Supervisory Board from NBG, Tax reform, fiscal issues and other. Georgian delegation should try to achieve the agreement on these issues with IMF in this week. Finance Minister Nodar Khaduri and Koba Gvenetadze, president of NBG are leaving for the USA and hold meetings with the Fund. Georgian side is agreed that the program supported by IMF should be continued and sides plan to implement concrete arrangements.