Page 20 - GEORptAug20

AIIB lends Georgia $100mn to mitigate coronavirus impact
IMF disburses $200mn to Georgia to mitigate pandemic effects
"Besides [this financing], the private sector is providing another $1.5bn. The same donor organisations are ready to assist the private sector of Georgia if help is needed. This enables us to start real work on a post [pandemic] crisis economic recovery plan together with our economic team and our international donor organisations. I am sure Georgia will be able to attract more financial resources", the PM said.
The Asian Infrastructure Investment Bank (AIIB) said on May 22 that it would extend Georgia a $100mn loan to support the country’s economy and provide more protection against the coronavirus (COVID-19).
The loan will be jointly financed by the World Bank.
“The project’s emergency healthcare assistance and social protection measures ... aim to support Georgia’s pandemic response and its efforts to protect the most vulnerable people affected by COVID-19,” Konstantin Limitovskiy, AIIB vice president for investment operations, said.
The executive board of the International Monetary Fund (IMF) approved on May 1 the disbursement of a $200mn loan tranche to Georgia under the Extended Fund Facility (EFF) to help the country meet urgent balance of payments and fiscal needs stemming from effects of the coronavirus (COVID-19) pandemic.
The board completed its sixth review of Georgia’s economic reform programme supported by a three-year extended arrangement under the EFF. Total disbursements so far under the arrangement amount to about $448mn. In completing the review, it also approved a request from Georgia for a waiver of nonobservance on the performance criteria on the ceiling on the augmented general government deficit.
The pandemic is expected to have a significant impact on Georgia’s economy, interrupting the positive economic trajectory seen in the past years. The weakened macroeconomic outlook and fiscal situation have created urgent external and fiscal financing needs. The IMF financial support is seen as making a substantial contribution towards fulfilling required increases in health spending and social safety nets.
IMF deputy managing director and chair Tao Zhang said that a drop in external demand and tourism have widened Georgia’s current account deficit, leading to a depreciation of the exchange rate and a substantial decline in economic activity. The authorities have acted rapidly by introducing sweeping containment measures and targeted support for households and most affected sectors, he added.
The European Bank for Reconstruction and Development (EBRD) is considering awarding ​a​€40mn loan​to finance an energy efficiency ("EE") upgrade in Georgia and the rehabilitation of 250 public buildings in the country that would increase their EE.
"The goal of the Project is to contribute to Georgia's green economy transition by introducing comprehensive EE renovations of public buildings, building the capacity of local construction companies in this sector and supporting the creation of a value chain of green technologies" the development bank said.
EBRD may award Georgia ​€40mn​for green investments in public buildings
Minister Giorgi Gakharia.
20​ GEORGIA Country Report ​August 2020 ​ ​www.intellinews.com