The Government, National Bank and commercial banks of Georgia will take active measures in coordination to mitigate the negative impact of coronavirus on the tourism sector of the country.

Such agreement was reached during the meeting of the Prime Minister of Georgia and Chief Executive Officers of commercial banks. Economic consequences of COVID-19 were discussed at the meeting with a particular focus on such vulnerable sectors affected by the novel coronavirus as tourism industry.

“Intention of the banking sector and authorities is to carry our coordinated measures to mitigate the economic consequences that may potentially stem from the spread of coronavirus.

It was decided to establish an effective working mechanism with an engagement of an economic team of the Government, National Bank and banking sector to suggest a plan of actions with specific steps in support of the tourism sector in the coming days.

Giorgi Gakharia said that the Government regards the banking sector as one of its key ally in this process and stands ready for effective cooperation.
Banking sector has made its readiness clear to provide maximum support in various forms if and when the tourism sector representatives encounter certain problems in servicing their loans as a result of COVID-19.

Participants agreed that most pressing task today is to keep as much cash resources in the vulnerable sectors as possible to avoid obstacles in the implementation of current projects. Government, the National Bank and commercial banking sector will take coordinated response measures towards this end.

Apart from an impact on the tourism sector, it was noted that COVID-19 may directly affect the financial and banking sector itself, though it was also noted that banking sector of the country is currently in the position to minimize such negative externalities”, - reads the statement.