Page 24 - GEORptOct22

IMF approves $280mn standby arrangement for Georgia
The executive board of the International Monetary Fund (IMF) approved a $280mn (with 100% of quota and special drawing rights of 210.4mn) Stand By Arrangement (SBA) for Georgia, which delivers support for the country's economic policies over the next three years. According to the board’s decision about $40mn with SDR 30 million or 14.3% of Georgia’s quota will be immediately available. The Georgian authorities intend to treat the new arrangement as precautionary, according to the IMF website.
"The authorities’ IMF-supported programme seeks to further entrench macroeconomic stability, build resilience, and strengthen medium-term growth as the country emerges from the COVID-19 pandemic and contends with spillovers from the war in Ukraine," the IMF said.
Previously, at the request of the Georgian authorities, the IMF held virtual meetings with Georgian officials between November 18, 2021, and March 31, 2022, to discuss a three-year economic programme amount of SDR210.4 million ($289mn).
According to the IMF, "to strengthen growth and make it more inclusive, the authorities’ structural reform priorities focus on education and training to tackle high unemployment and address labour market mismatches, and on upgrading the country’s infrastructure".
"Actions in these areas will improve the business environment, foster regional integration, and enhance the country’s potential as a transportation and logistics hub," the IMF concluded.
The World Bank approved a $400mn Human Capital Development Programme and a $109mn project to improve the Kakheti region's transport links with the capital and the country's highway network on March 23.
The bank said the $400mn funding is the largest multi-profile investment by the World Bank in its 30 years of partnership with Georgia. According to the World Bank, the Human Capital Programme aims to "improve the quality of life of all Georgian citizens through fair and equitable access to high-quality education, more focused social assistance and strong preventive health care, with reduced costs of treatment and medicines."
According to the bank, the programme will make a significant contribution to improving the efficiency of service delivery and will help to attract vulnerable populations to health, social protection and employment services. “The reforms are expected to improve social assistance coverage for poor families with children while improving training and providing job opportunities for the unemployed,” the bank said in a statement.
In addition, the programme will help the government reform healthcare procurement and pricing, increase efficiency and equity in the pharmaceutical market, and improve primary healthcare as well as in-patient care. The programme will contribute to the implementation of a "fundamental reform of the financing and organisation of the education system" and will help young people improve their skills and competencies.
According to the bank, the $109mn project will improve the transport links of the Kakheti region with the capital and the country's highway network. The
World Bank approves $509mn programmes for Georgia
24 GEORGIA Country Report October 2022 www.intellinews.com