RTTNews - The International Monetary Fund On Thursday completed its third review of a loan amount of SDR 477.1 million or US$748.3 million to Georgia, to help support the country's macroeconomic policies, increase international reserves and also boost investor confidence. The completion of review will allow for an immediate disbursement of SDR 94.6 million or US$148.4 million.
Moreover, the IMF agreed for an additional loan amount of SDR 270 million or US$423.5 million, and allowed the country to withdraw aid until June 2011.
The IMF's Deputy Managing Director and Acting Chair, Murilo Portugal said, The economic and financial impact of the crisis on Georgia will stretch into 2010, despite some signs that the economy may have reached its trough. Risks remain elevated due to uncertainties about the international economic environment and the strength of the recovery of private capital inflows and bank credit.
Against this backdrop, the Georgian authorities' strategy for economic recovery was to maintain an expansionary fiscal policy in 2009, with the revenue shortfall to be fully absorbed by the widening of the fiscal deficit. The authorities intend to move to a path of strong fiscal adjustment in 2010, with emphasis primarily on expenditure reduction, the IMF noted.
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