Government of Georgia and World Bank signed two Financing Agreements on May 22, 2015 for the policy development of competitiveness in the private sector of the country with support of the International Bank of Reconstruction and Development (IBRD), along with the program development of inclusive growth in the country. Total allocation for these two goals is 120 MLN USD.
Agreements were signed by H.E. Nodar Khaduri, Minister of Finance of Georgia and Mr. Henry Kerali, Regional Director of the World Bank in South Caucasus.
Program development of competitiveness in the private sector is a policy measure, which envisages the increased competitiveness of the private sector of Georgia, development of financial intermediation and boosted export potential.
Inclusive growth is a development policy measure also, encompassing the improvement of fiscal control in public institutions, budget planning and improved reforms of public services, ensured effectiveness of social spending.
“Agreements concluded today will benefit the current reform agenda in the public and private sectors of Georgia. Implementation of actions in both directions has been launched already and respectively these funds will be directed to the State Budget. You may well be aware that reforms are in progress in the public funds management, healthcare, securities market development, improvement of procurement system, etc. Hence, we highly appreciate the World Bank’s continued support of our country to make us successfully complete the said reforms” noted H.E. Nodar Khaduri, Minister of Finance of Georgia.
“Inclusive growth is a development program measure, which supports authorities of the country in delivering improved public services and fiscal management for making the economic growth further more inclusive. It means that benefit obtained through economic growth should be felt by each and every citizen of Georgia. Program measure for the competitiveness of the private sector on the other hand implies the improved effectiveness of the public finance, establishment of pro-business conditions, improved competitiveness of the private sector. It is all very important, as the private sector should become a prime source of employment and driving force of the economy” noted Mr. Henry Kerali, Regional Director of the World Bank in South Caucasus.
“Negotiations with the World Bank have manifested in two agreements. On the basis of this milestone we will be able to implement plenty of reforms in favor of Georgia. This support covers the establishment of the Investors Council, which will facilitate a further more active cooperation between the businesses and authorities; we will also establish a framework legislation for the development of small and medium enterprise development; increased access to finance; legislation is currently drafted on the deposit insurance and capital markets; legislation on standards and accreditation is being improved; agencies for the development of innovations and entrepreurship are established to introduce advanced technologies in Georgia on the one hand and create new enterprises – on the other. All the aforesaid will boost the economic development of the country by empowering the business sector and facilitating the job creation” noted Ms. Irma Kavtaradze, Deputy Minister of Economy and Sustainable Development of Georgia.
Priorities envisaged by both agreements are consistent with the Strategy of cooperation of the World Bank and Georgia for the period of 2014-2017 and attuned with the Socio-Economic Development Strategy of the country labeled as Georgia 2020.