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International Financial Organizations Eager to Support Georgia’s Bank Sector

Business Materials 25 September 2008 15:09 (UTC +04:00)

Georgia, Tbilisi, 25 September/ corr Trend N.Kirtzkhalia / "The European bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) are developing a scaly financial package to support Georgia's bank sector," Prime-Minister Vladimir Gurgenidze said to a meeting of the Georgian government on 24 September.

"Additional financing will help banks to restore crediting the country's economy shortly, he said. This, in its turn, will enable Georgia to restore and develop the economy, and also hasten the growth rate."

The bank sector of the country intends to cover the losses from the August war through attracting finance from international financial institutes. They are prepared to give Georgian banks more than $1bln during next year and a half, the acting president of the National Bank of Georgia (NBG) David Amaglobeli said recently.

The United States stated its intention to render assistance to Tbilisi in the amount of $1bln. The International Monetary Fund approved for Georgia a new program with the budget of $750 mln and the National bank will be able to receive almost half of these funds this year.

Along with the EBRD and IMF, several organizations including the Asian Development Bank and the German bank KfW, are prepared to help the country financially.

In 2008 the NBG expects 20%-cut in crediting by commercial banks as compared to the average annual index of 60% over the last four years.

The correspondent can be contacted at [email protected]

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