U.S. Calls Georgia for Closer Ties with IMF

The U.S. Department of State issued a statement on January 6 urging the Georgia’s new authorities to work closely with the International Monetary Fund.

“Georgia will have to negotiate an appropriate program with the IMF if it wishes to approach the Paris Club for further discussions about restructuring its debt,” the press statement reads.

“We stand prepared to work with the new Georgian government to deepen that country’s free market and democratic reforms. Regrettably, the previous government had failed to meet the performance criteria for their Poverty Reduction and Growth Facility with the International Monetary Fund and fallen into arrears on its debt restructuring agreement with the Paris Club.”

Georgia has around USD 1,7 billion foreign debt. An International Monetary Fund mission is expected to visit Georgia in early February.

At the news briefing in Washington on January 5 deputy spokesman of the U.S. Department of State Adam Ereli said, “it is clear that the Georgian people have spoken and they support Mikheil Saakashvili’s plan to reform Georgia.”

“For our part, we look forward to working closely with President-elect Saakashvili to support Georgia’s democratic and market economic reforms, fight against corruption and intensify relations with the United States, Europe, and all of Georgia’s neighbors,” Adam Ereli added.