IMF to Consider Potential Implications for Georgia of NBG Decision
James John, Georgia’s mission chief to the IMF, told Civil.ge that IMF “looks forward to discussing with NBG and private banks the concerns” regarding NBG’s recent decision to change its regulations, following the sanctioning of Otar Partskhaladze. In a written communication with Civil.ge the IMF official conveyed that the IMF “then can make a fuller assessment, including to consider potential implications for Georgia’s IMF-supported program and our ongoing efforts to put it back on-track.”
“As we said earlier, quick and appropriate NBG action helped limit the impact of Russia’ war in Ukraine on the financial sector, including by requiring banks to adhere to relevant sanctions. We have concerns regarding the recent announcement by the NBG to alter its approach to sanctions.”
The IMF-supported program originally included a three-year stand-by arrangement with a loan of $289 million. After the completion of the first tranche of $40 million, Georgia was due to receive the second tranche this summer, but the IMF postponed the submission and Board approval of the second review of Georgia’s Stand-by Arrangement /SBA, stating that the delay in Board approval was “partly due to disagreement over a change in the NBG’s management structure”.
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