Page 16 - GEORptJun20

World Bank provides $80mn to Georgia under Fast Track COVID-19 Facility
The 7%-of-GDP plan entails a social assistance package for individuals, as well as a fiscal stimulus in the form of tax relief and exemptions for businesses over the course of the following six months.
According to the PM, 350,000 citizens will be entitled to receive targeted financial assistance, “the bare minimum of what the Georgian Government could offer today to each of its citizens.”
The employees who have lost their jobs during the pandemic will receive a monthly allowance amounting to GEL200 for six months ($375 in total). Employees who have not been laid off during the pandemic and receive less than a GEL750 ($234) salary, will be exempted from income tax for the next six months. For those who earn less than GEL1,500 ($469), income tax will only apply to a GEL750 ($234) tax base.
Self-employed people or jobless persons able to prove they have lost income due to the pandemic will receive GEL300 ($94) as one-off assistance.
Socially deprived groups (320,000 people), as well as adults and children with 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.
16​ GEORGIA Country Report ​June 2020 ​ ​www.intellinews.com