EBRD & ADB vow for support of Georgian economy

By Natalia Kochiashvili

Friday, April 10

Georgian PM has held a video conference with the presidents of ADB and EBRD. Photo: Prime Minister’s press office.

The presidents of the international banks praised Georgian gov’ts efforts in the fight against the coronavirus crisis.

Presidents of Asian Development Bank (ADB) and European Bank for Reconstruction and Development (EBRD) held a video conference with Georgian Prime Minister Giorgi Gakharia discussing the support package for Georgia’s fight against the COVID-19 pandemic and recovery of the economy.

Bank presidents Suma Chakrabarti (EBRD) and Masatsugu Asakawa (ADB) have praised the steps taken by the government against the virus and to cope with the economic crisis sparked by the virus and said that the country will be able to rapidly regain its economic rates and positions.

Asakawa said that pandemic is causing severe hardship for many, especially in tourism and once Georgia moves past the peak of the pandemic, significant challenges will remain to facilitate a recovery. “ADB is working on a package of support to quickly help Georgia build a path to economic stability and growth,” he noted.

According to the Georgian gov’t press office, parties are working on development of a package of measures that will focus on tackling challenges caused by pandemic. Gakharia and the bank presidents also discussed the measures and assistance that Georgia may receive to continue the state-funded programmes.

ADB’s support is expected to focus on countercyclical budget financing, a fast tracked policy based loan for social protection measures, and programs to strengthen the energy, urban water, and vocational skills sectors—all of which are essential to ensuring a strong recovery. ADB is also increasing support for private sector operations in Georgia by providing loans and trade finance to banks in the country.

PM thanked the banks for funding many projects in Georgia and emphasized that all major infrastructure projects funded by them are being implemented despite the ongoing crisis.

On March 18th, ADB announced an initial package of approximately $6.5 billion to address the immediate needs of its developing member countries, including Georgia, as they respond to the COVID-19 pandemic. ADB stands ready to provide further financial assistance and policy advice whenever the situation warrants.

The EBRD has allocated funds worth Euro 1 billion through the emergency Solidarity Package to assist its clients across 38 economies, including in Georgia.