Page 14 - GEORptSep20

World Bank provides $80mn to Georgia under Fast Track COVID-19 Facility
disabilities (40,000 people), will be entitled to GEL600 ($188) financial assistance for the next six months.
As for the business sector, commercial banks will receive $600mn ($188mn) for long-term lending.
Another GEL500mn ($157mn ) was allocated for businesses, including GEL300mn ($94mn) for financing lines of credit aimed at small and medium sized businesses. The government will guarantee 90% of the new loans extended to small businesses. Additional funds will be allocated to support farm credits.
According to Gakharia, the state will write off overdue fines for individuals and businesses that use the state-operated irrigation system.
The World Bank is to provide $80mn in financial support to Georgia under its Fast Track COVID-19 Facility to help with efforts by the country’s government to mitigate and address the health and social impacts of the coronavirus pandemic, the international financial institution said in ​a press release​.
The project is part of the World Bank’s broader support for Georgia and it is the first in a series of three lending operations to be rolled out over the coming three months.
The World Bank is also collaborating with the Asian Infrastructure Investment Bank to provide an additional $100mn under a joint co-finance arrangement.
“Through our rapid support we are helping save lives and protect the livelihoods of those impacted by the pandemic during this challenging time. We estimate that the total World Bank Group financing package for Georgia COVID-19 response will be approximately $200mn in new financing, in addition to the approximately $300mn funds in our pipeline for 2020-2021 for projects in support of broader development needs, such as digital connectivity and infrastructure”, said Sebastian Molineus, World Bank regional director for the South Caucasus.
The second upcoming operation will help the government cover the unanticipated financing gap and ensure Georgia’s progress in implementing reforms in areas critical for inclusive economic growth. The third operation is intended to support the jobs agenda as well as micro, small and medium sized enterprises (MSMEs) that have been affected by the pandemic.
In addition the World Bank has said it will support digital connectivity and infrastructure through the upcoming “Log-In Georgia” project. It will back the government’s plan to connect more than 700 villages to the internet via fibre-optic cable networks. This will boost remote learning and overall connectivity essential for livelihoods hampered by pandemic-required social distancing, the World Bank said.
3.2 ​Macro outlook
14​ GEORGIA Country Report ​September 2020 ​ ​www.intellinews.com
World Bank sees Georgia’s GDP contracting 4.8%
Georgia's economy is set to shrink by 4.8% in 2020 versus a total decline in the South Caucasus region of 3.1%, the World Bank said late on June 8 as it released its updated Global Economic Prospects report.