World Bank to provide Euro 45 million funding

By Natalia Kochiashvili

Thursday, July 9

“The support of the World Bank is very important for our country, because it will be specifically aimed at solving the problems caused by COVID-19,” said the Minister of Finance.

Over the next 15 months, the World Bank will allocate about $ 160 billion to help more than 100 countries to protect poor and vulnerable families, support companies and rebuild their economies.

Finance Minister Ivane Machavariani and the World Bank's regional director for the South Caucasus, Sebastian Molineus, have officially signed an agreement under which Georgia will receive an additional Euro45 million in funding for Economic Management and Competitiveness Development Policy. This assistance from the World Bank will be used to reduce the impact of COVID-19 on the country's economy.

According to the Ministry of Finance, this assistance from the World Bank will be used to reduce the impact of COVID-19 on the country's economy. The decision to allocate additional funding was approved by the World Bank's Board of Executive Directors on June 30.

The signed agreement is part of the financial support that the Georgian government has received from partner international donor organizations to fight COVID-19 and further rehabilitate the country's economy.

“During this difficult time, we, as a strong partner, stand by Georgia and support the government's swift and effective anti-crisis measures aimed at saving lives, protecting their livelihoods, mitigating the economic consequences of COVID-19 and building strong economic reforms,” said Molineus.

Agency reports that the additional financial assistance is related to the financing of Euro45 million previously allocated for Economic Management and Competitiveness Development Policy Measures, which was approved by the World Bank's Board of Executive Directors in March 2020.

The overall goal is to promote reforms that create jobs, increase economic inclusion and maintain resilience. In particular, the focus is on improving the efficiency of the use of state resources; To promote more competitive markets; On the diversification of the financial sector; To improve teacher performance and pay; And strengthening investment promotion.

An additional Euro45 million has been allocated in the second tranche to alleviate the economic impact of the COVID-19 pandemic, with financial support from the World Bank for Georgia.

The first, a $80 million financial aid package, was provided to the country through the ‘Rapid Assistance Mechanism’ to reduce the impact of COVID-19 on health and social welfare.

The third tranche will focus on helping micro, small and medium-sized enterprises and maintaining jobs that have been negatively affected by the COVID-19 pandemic.