International Monetary Fund Demands Budget Sequester from the Georgian Government

At the meeting with the members of the Government of Georgian on July 25th, mission of the International Monetary Fund (IMF) demanded reduction of expenditures of the budget, e.g. sequester. Otherwise, the Fund will not resume its program of “Poverty Recovery and Economic Growth”. The sequester considers reduction of budget expenditures on 150 million Laris. Budget deficit for the first half of year 2001 reached 60 million Laris. The budget sequester must be confirmed by the Parliament, but both the oposition and the ruling party object the sequester.

IMF demands elimination of the moratorium on timber export as well. If the Georgian side will meet these requirements, the country will receive 12 million USD trench under the program of “Poverty Recovery and Economic Growth” in October from the Fund.

It is remarkable, that before its July 25th Meeting, the Government and the President have been widely promoting indications of economic growth, but the reality appeared totally opposite.