National Bank of Georgia Engages Actively to Reinstate Suspended IMF Program

The National Bank of Georgia (NBG) is ardently pursuing efforts to promptly reinstate the International Monetary Fund (IMF) program that has been put on a temporary hiatus, according to Natia Turnava, the acting president of the National Bank.

This commitment was articulated in a recent discussion with Bo Lee, the Deputy Managing Director of the IMF.

Throughout the dialogue, both parties reaffirmed their mutual aspiration to deepen bilateral ties, expedite the resumption of the IMF-backed Stand-by Arrangement (SBA), and conclude its review.

It's pertinent to mention that the symbiotic relationship between the National Bank and the IMF has been flourishing since 1991. The constructive ambiance that has historically permeated interactions between the Central Bank of Georgia and the Monetary Fund was evident during this recent engagement.

Currently, Natia Turnava is representing the National Bank of Georgia at the annual conclave organized by the International Monetary Fund and the World Bank in Marrakesh.

However, a curveball came in the form of the Georgian Parliament's decision to override the President's veto and introduce amendments to the Organic Law governing the National Bank. This legislative maneuver ushered in the creation of a First Vice President role within the National Bank, assuming the acting presidency of the NBG in the president's absence. Consequently, the board of the National Bank inducted Natia Turnava into this newly minted position.

Such unilateral legislative adaptations ruffled feathers at the IMF, which contended that these were implemented without its consensus, effectively breaching the conditions of the Fund-supported program.

Adding another layer of complexity to the equation is a contentious provision in the rule concerning the enforcement of sanctions. James John, the head of the IMF mission, expressed the Fund's reservations, citing concerns related to this amendment.