Georgia to receive $750m loan from IMF

IMF has approved a $750m loan for Georgia for boosting confidence in its economy and rebuilding the currency reserves of the country.

Georgia’s economy is facing some economic worries following last month’s conflict with Russia.

Strategic Business

According to some analysts, the loan would help Georgia to overcome the difficulties to attract foreign   investment and selling products abroad. The loan was approved after Nato chief Jaap de Hoop Scheffer visit to Tbilisi.

Jaap condemned Russia’s conduct in the conflict and called for Georgia’s instant integration with Nato.

A third of this loan is being released immediately while the rest of it will come in parts during the next 18 months.

According to David Owen, who is a senior IMF adviser, the funding is higher than normal limits for the fund as the country facing exceptional pressure.

He further said that The Russian incursion hit the Georgia’s growth prospects, but still the economy was recovering quickly.

On Monday, the EU also announced 500m euros to help Georgia’s quick recovery.

EU foreign ministers cleared in Brussels that at least 200 ceasefire monitors will be deployed around Abkhazia and South Ossetia after Russian troop withdrawal that is expected by 10 October.

It has not been cleared yet, the monitors will be allowed to enter the breakaway areas or not as they are full of Russian troops.

Russia launched a counter-attack and ejected Georgian troops from South Ossetia as well as Abkhazia.

Rate this post