IMF Approves New Assistance Program in Georgia

The Executive Board of the International Monetary Fund (IMF) announced the approval of a three-year, USD 144 million arrangement for Georgia. In a press release on Friday, June 4, the IMF stipulated that the funds will be directed through the Poverty Reduction and Growth Facility (PRGF) and will go towards support of the Georgian government’s economic programs until June, 2007.

According to the agreement, the first installment of these funds, worth about USD 21 million, will be available immediately.

Takatoshi Kato, Deputy Managing Director and Acting Chairman for PRGF, said, ?the new Georgian authorities have launched ambitious reform efforts aimed at addressing issues of governing, improving the efficiency and effectiveness of the public sector, and strengthening the macroeconomic fundamentals, looking to achieve long-term economic growth, poverty reduction, and private sector development.?

“In the near future, Georgia will seek a debt rescheduling with the Paris Club creditors and agreements with non-Paris Club bilateral creditors on comparable terms. The authorities intend to pursue prudent external debt management, refraining from contracting or guaranteeing any non-concessional loans during the program period,” Takatoshi Kato added.

The PRGF is the IMF’s concessional facility for low-income countries. It is intended that PRGF-supported programs wikk be based on country-owned poverty reduction strategies.