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ADB expands support package program for Georgia

Business Materials 16 July 2020 14:07 (UTC +04:00)
ADB expands support package program for Georgia

BAKU, Azerbaijan, July 16

By Tamilla Mammadova – Trend:

Asian Development Bank (ADB) is working on a substantial package of support in response to COVID-19 in Georgia,ADB Country Director for Georgia Shane Rosenthal told Trend.

"We are supporting reforms in Georgian energy and water sectors and preparing major new programs in agriculture and skills development," he said.

According to Rosenthal, these are expected to roll out in 2020 and 2021 and help set the stage for economic recovery.

"ADB’s support also includes financing directly to the private sector," the director said.

Rosenthal added that ADB’s support for COVID-response in Georgia has started with the recent approval of a $100 million loan to help finance the government’s anti-crisis economic recovery plan, and a grant for state-of-the-art equipment needed for rapid coronavirus testing.

"The $100-million COVID-19 Active Response and Expenditure Support Program provides budget support to the government as it embarks on a range of measures to support Georgians. These measures include financing temporary payments to up to 350,000 formal-sector workers who could lose their jobs, one-off payments to up to 250,000 informal or self-employed workers, and subsidized utility bills for 1.2 million families," Rosenthal emphasized.

The director said that there are also tax deferments for about 4,000 small and medium-sized tourism businesses and subsidized loan repayments for 2,000 small and medium-sized hotels.

To help contain the spread of the disease, the loan supports the government as it provides free access to COVID-19 diagnostic and treatment services.

"With a view to the future, we are now working with the authorities on new programs to further strengthen social protection schemes and public debt management, boost the relevance of vocational skills training, and increase agricultural productivity," Rosenthal said.

According to the director, ADB’s support is focused not just on building new infrastructure, but on the systems and institutions responsible for managing these assets and delivering services. This means helping state owned enterprises responsible for electricity and water to become more efficient, improve corporate governance, and reduce dependence on public funding.

"We are also ramping up our assistance to the private sector, for example helping banks continue to provide capital where it is needed, and extending their reach to small and medium size business," Rosenthal added.

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