An International Monetary Fund (IMF) team led by James John held meetings in Tbilisi during October 26 - November 7, 2022 to conduct discussions on the first review of Georgia’s economic reform program supported by an IMF Stand-By Arrangement (SBA). At the end of the visit, Mr. John issued the following statement:

“Following productive discussions, the Georgian authorities and the IMF team reached staff-level agreement on policies for completion of the first review of the SBA. The agreement is subject to approval by IMF management and consideration by the Executive Board, which is expected in December 2022. Completion of the review will make SDR 30 million (about USD 38 million) available to Georgia. The authorities are treating the program as precautionary.

“The Georgian economy has performed strongly in 2022 as adverse spillovers from the war in Ukraine thus far have generally been less impactful than expected earlier. Buoyant tourism revenues, a surge in immigration and financial inflows triggered by the war, and a rise in transit trade through Georgia come on the heels of a robust recovery from the pandemic and have lifted growth and fiscal revenues, strengthened the current account balance and the GEL, and supported accumulation of foreign currency reserves. Credit growth has slowed, but inflation remains elevated reflecting still high commodity prices and strong domestic demand. Quick and appropriate NBG action has helped limit the impact of the war on the financial sector, including by requiring banks to adhere to relevant sanctions”.