IMF Assesses Current Program In Georgia
Government of Georgia and International Monetary Fund Mission reached an agreement on completion of Second Review of the Extended Arrangement under the Extended Fund Facility for Georgia, which will be submitted to IMF Executive Board in June.
Upon completion of the review, 30 mln SDR (approximately 43.3 mln USD) will become available for Georgia. Accordingly, total transfers within the framework of the program will be 90 mln SDR (130 mln USD).
“In 2017, growth in Georgia was higher than expected due to increase of trade partners and high local consumption. Increase of export, tourism and money transfers facilitated reduction of current account deficit to 8.7% GDP. Loans issued for private sector facilitated economic activities. Fiscal deficit was lower than envisaged by the program due to high incomes, which in its turn is connected to economic growth. High incomes and limitation of current expenditures created the possibility of increase of capital investments and buildup VAT refund. In 2018, the growth will still be high and the risks will be balanced. Current account deficit will presumably slightly increase due to fuel price increase and capital expenditures”, - state IMF representatives.