IMF Statement on the Situation in Georgia

The management and staff of the International Monetary Fund are greatly concerned about the recent events in Georgia. The loss of life is tragic. Moreover, the economic damage is regrettable for a country that has worked hard in recent years to improve the economic well-being of its population.

In particular, Georgia has followed sound macroeconomic and financial sector policies, notably in the context of the IMF-supported program under the Poverty Reduction and Growth Facility that ended in September 2007. The Georgian authorities also have implemented wide-ranging economic reforms that have strengthened the financial sector and greatly improved the business climate, resulting in rapid economic growth. At the same time, Georgia’s international reserves have increased substantially.

The International Monetary Fund maintains a close policy dialogue with the Georgian authorities and we expect their strong economic policies to be continued. On this basis, we are ready to support Georgia with policy advice, technical assistance and, if needed, financial support using available IMF facilities.

   — John Lipsky, Acting Managing Director, International Monetary Fund