The International Monetary Fund (IMF) and Government of Georgia reached an agreement on successful completion of the third review of the program ongoing in Georgia within the " Extended Fund Facility ", - the mentioned was known today after the meeting between Prime Minister Mamuka Bakhtadze and the Head of the International Monetary Fund Mission Mercedes Vera-Martin, which was attended by Minister of Finance Ivane Matchavariani, Vice-President of National Bank Archil Mestvirishvili and members of the Fund Mission.
At the meeting, the parties have discussed program ongoing, supported within the " Extended Fund Facility" of the International Monetary Fund, fiscal parameters of 2018, economic trends existing in the country and in the region and key parameters of the 2019 budget.
According to the Head of International Monetary Fund mission, as result of structural reforms, it is expected acceleration of economic growth in the medium-term period. The Fund mission deems that the reform program is successfully ongoing and the majority of the criteria required for completion of the third review are fulfilled. According to the statement of the head of the mission, unswerving performance of the Government Reform Plan is most important, in order to achieve higher and more inclusive growth. As Mercedes Vera-Martin has mentioned after the meeting with the Head of the Government, the program supports the ambitious reform plan of the government of Georgia.
"The International Monetary Fund mission, together with the Government of Georgia, has successfully completed the third review of the program. The Agreement will be submitted to the Board of Executive Directors of IMF for approval in December of the current year. Once the review is completed, about $41.6 million will become accessible for Georgia. According to our review, the economic situation in the country is stable and the government has taken responsibility and liability to implement structural reforms for inclusive and long-term economic growth. Inflation is the target landmark within. Macroeconomic policy is sustainable and reasonable. We hope that within the framework of the " Extended Fund Facility", the third review will promote further development of the country,” –has noted Mercedes Vera-Martin.
As the Minister of Finance has stated after the meeting held in the administration of the government of Georgia, the International Monetary Fund has highly evaluated the implemented and ongoing reforms of the government.
"The third review of the program, which has been implemented by the Government of Georgia and the International Monetary Fund together, was successfully completed. This means that we have practically agreed about all the major indicators, based on which our economic strategy will be planned for the next year, also, the budget parameters - whether it is a deficit indicator or an economic growth rate. Although, after the review, there is a slightest mitigation in the forecast of economic growth, however, the Monetary Fund has made a very high evaluation for the ongoing reforms. Despite the political context, these reforms should be continued. Exactly these reforms are a firm guarantee that Georgia will be the most sustainable economics country in the region as in medium-term as in long-term perspective,” – Stated Ivane Matchavariani, after the meeting with the International Monetary Fund.
The International Monetary Fund mission, which has been in Georgia since October 17, 2018 has completed its work today.