Page 14 - GEORptMay20

World Bank provides $80mn to Georgia under Fast Track COVID-19
the health care of all citizens," Gakharia said.
Almost all the opposition parties have sharply criticized the government’s anti-crisis plan, claiming that it is insufficient.
In his public speech, Gakharia stressed the social dimension of the plan, but the details related to the GEL2.11bn earmarked for the economy and business remained rather scarce. Furthermore, a significant part of this budget, namely GEL1.1bn, is made up of loans extended by the government to banks for boosting lending and therefore cannot be counted as “public spending”.
The country’s GDP will contract by 4% this year, the government has assumed.
Gakharia said that budget revenues will likely drop by GEL1.8bn ($563mn) and the government’s expenditures will decrease by GEL300mn ($94mn) due to events and business trips that cannot be held.
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
14​ GEORGIA Country Report ​May 2020 ​​www.intellinews.com