2018-10-29
International Monetary Fund (IMF) and authorities of Georgia agree on the successful completion of the Third Review of the Extended Fund Facility (EFF) in the country. It became known after a meeting of Mercedes Vera Martin, IMF Mission Chief with Mamuka Bakhtadze, Prime Minister of Georgia today, which was attended by Ivane Matchavariani, Minister of Finance of Georgia; Archil Mestvirishvili, Deputy Governor of the National Bank of Georgia (NBG) and IMF Mission Members.
Parties discussed the performance of EFF-supported program in Georgia, fiscal indicators of 2018, economic trends observed in the country and region at large, key parameters of the Draft State Budget for 2019.
IMF Mission Chief believes that structural reforms in the country will potentially lead to an accelerated economic growth. IMF deems that reform program is successfully implemented and majority of criteria required for the completion of the Third Review are met. In the opinion of the IMF Mission Chief, consistent implementation of the reforms by the authorities is important to reach high and more inclusive economic growth. It was also noted that the EFF Program supports the ambitious reform plan of the Georgian authorities.
"IMF Mission has successfully completed the Third Review of the IMF Program together with the authorities of Georgia. Staff agreement will be submitted to the IMF Executive Board of Directors in December of the current year. Upon endorsement, almost 41.6 MLN USD will be made available to Georgia. In line with our review, economic position of the country is stable. Government has committed to carry out structural reforms to reach inclusive and sustainable economic growth in the country. Inflation is within the target threshold. Macroeconomic policy is sustainable and prudent. We hope that the Third Review within the EFF will facilitate a further development in the country" noted the IMF Mission Chief.
As Minister of Finance noted after a wrap-up meeting held at the Government Administration, IMF praises the current and past reforms implemented by the Government of Georgia.
"Third Review under the EFF has been concluded successfully. It is a program, which is jointly implemented by the Government of Georgia and IMF. It means that we practically agreed on all the major indicators, which will serve as a basis of our economic strategy for the coming year and budget parameters - be them deficit volume or rate of economic growth. As a result of the review, we have seen a slight shift in the economic growth projections, though IMF still praises our current reforms. Irrespective of the political context, these reforms should be continued. These very reforms are the solid guarantee for reaching the most sustainable economic growth in mid-term and long-term horizon of Georgia" added the Minister of Finance of Georgia after the completion of a wrap-up meeting with the IMF Mission.
IMF Mission arrived in Georgia on October 17, 2018 and completed its program review today.
Prime Minister's Press Office