Georgian, Tbilisi, October 21 / Trend Capital N. Kirtskhalia /
The Georgian Ministry of Finance does not agree with EBRD's forecast concerning economic development of the country. It does not intend to change forecasted indices.
The international organizations have the right to make their conclusions, but the Georgian government is optimistic and forecasts reduction of economy by 4 percent in 2009 but 2 percent growth in 2010, Georgian Deputy Minister of Finance Zaza Chelidze told radio Kommersant.
Chelidze said that the government expects for intensification of financial sector and investment flows as a result of fiscal stimulation.
The investment rate falls by 30 percent worldwide. Georgia is not an exception, " Chelidze said.
About $226 million were invested in Georgia as of the first quarter. This index is unsatisfactory. The government plans to intensify and increase investments in 2010.
However, the ministry of finance does not specify the amount of projected investments in 2010.
EBRD forecasts 5.5-percent drop of Georgian economy in 2009. EBRD experts said that the crisis significantly affected Georgian economy.
EBRD said that despite the government's fiscal stimulus, improvement of the situation will slow and will depend on resumption of private capital inflows and loan activity of banks in 2010. At present, it is currently limited because of the large volume of problematic loans.
