IMF to give $750m in financial assistance to Georgia

The International Monetary Fund (IMF) will provide $750 loan to Georgia in an effort to rebuild its economy after the recent war with Russia.

Georgia’s economy has gravely suffered after the recent war, key infrastructure including roads and ports have been destroyed by the Russian bombing during the war.

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The US Secretary of State Condoleeza Rice has already announced a $1bn aid package in financial assistance to Georgia.

Georgia requests $2bn financial aid from the International community.

It has not yet been cleared how much toll there would be on Georgia‘s economy from the war, but according to many experts it would be quite significant.

Georgia’s Govt. says that there will be 5 percent to 6 percent fall in its economy during this year that is half the rate of expansion that was observed during the last year.

David Owen, who is senior adviser to the IMF’s Middle East and Central Asian division, says, “It wouldn’t be a surprise if Georgia’s annual growth considerably comes down during this year.”

According to the IMF, the loan will be approved by its executive committee and it has been designed to decrease the impact of the war on Georgia’s economy. Before the war, there were forecasts that Georgia’s economy would grow 9 percent during this year.

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