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IMF appreciates realization of Georgian governmental economic program

Business Materials 13 February 2010 11:14 (UTC +04:00)

Georgia, Tbilisi. Feb. 13 / Trend N. Kirtskhalia /

The International Monetary Fund (IMF) appreciated the progress in implementing the economic program of the Georgian Government, head of IMF mission in Georgia, Edward Gardner said at a press conference in the National Bank of Georgia on Friday.

He presented the fifth review of the economic program, which is supported by the Fund.

The success of the economic program of the Georgian Government, was demonstrated in a minimal reduction of the economy in 2009 and the restoration of investors' confidence. According to him, economic growth in the country was also stressed in the second half of 2009, Gardner said.

According to Gardnereconomic program in 2010 envisages GDP growth of two percent and five percent inflation in consumer prices. While observing the planned parameters of budget expenditures, the budget deficit in 2010 will be 7.4 percent instead of 9.2 percent last year.

On the other hand, the deficit will reach 14 per cent of GDP. It will be stipulated by growth of import. Given the fact that the inflow of private capital will begin later, resources received from the IMF will help to support the country's balance of payments.

"We appreciate the process in implementing the program. The country has successfully fulfilled all the criteria for the program by late of 2009. The policy of the country's economic team in 2010 and the IMF program correspond to each other," Gardner said.

The mission of the International Monetary Fund under the leadership of Edward Gardner worked in Georgia from January 26 to February 10. The main purpose of the visit was the presentation of the fifth review of the economic program, which began in September 2008. Its initial cost was approximately $ 750 million. In August 2009, available financial package within the program has grown to $1,2 billion and the period of the program has grown to June 14, 2011.

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