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Georgia to receive next tranche from IMF worth $40M

Finance Materials 14 May 2019 15:31 (UTC +04:00)

Baku, Azerbaijan, May 14

Trend:

Georgia will receive about $40 million from the IMF if it approves the review of the “Extended Financing Mechanism” program, head of the International Monetary Fund (IMF) mission, Mercedes Vera-Martin said, Trend reports via Sputnik Georgia.

The extended financing mechanism has added reserve and credit shares. It is targeted to provide foreign exchange funds to countries for longer periods and in larger amounts in relation to quotas than is provided for within the framework of ordinary credit shares.

As the head of the International Monetary Fund’s mission, Vera-Martin said at a briefing in Tbilisi, the fourth review of the program will be considered by the IMF Executive Board in June.

During their two-week working visit to Georgia, the Mission of the International Monetary Fund familiarized itself with the current economic situation in Georgia and the reforms being carried out in the country.

The last time Georgia received funds from the IMF in December 2019 after the approval of the third review of the program.

The third review of the program, after which Georgia last received funds from the IMF, took place in December 2019.

“Despite the weak external environment, according to preliminary data, economic growth in Georgia in the first quarter of 2019 was high,” said Vera-Martin.

The IMF forecast for Georgia’s economic growth in 2019 was 4.6 percent.

"Inflation has slightly exceeded the target of 3 percent, mainly due to an increase in excise tax on tobacco. Structural reforms and infrastructure investments will accelerate growth in the medium term, which will be approximately 5.25 percent. The current account deficit will slowly decrease, based on improvement trade balance, " said Vera-Martin, commenting on program performance.

In April 2017, the IMF approved a new three-year program aimed at supporting economic reforms in Georgia. The agreement involves the allocation of Georgia about $297.5 million, of which more than $166.3 million Georgia has already received earlier.

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