IMF: Georgian Economy ‘Well Placed’ to Recover

International Monetary Fund (IMF) said in a statement on November 5, that “because of its fundamental strengths, the Georgian economy is well placed to recover from the August armed conflict.”

“Nonetheless, Georgia is not immune to the impact of the unfolding global financial turmoil. Foreign capital inflows, already affected by the conflict, may be further delayed,” it said and added that in these circumstances, international donors’ pledge of USD 4.5 billion support would be “very helpful in restoring stability.”

“The authorities’ actions to address the immediate consequences of the conflict were appropriate and the banking sector proved resilient,” IMF added.

An IMF mission visited Georgia on October 28-November 5 to conduct the first review under the 18-month USD 750 million stand-by loan, which was approved by the fund in September with a goal “to support the government’s policies to stabilize the economy, help bolster investor confidence and rebuild gross international reserves as well as catalyze donors’ support.”

This post is also available in: ქართული (Georgian) Русский (Russian)