VIENNA – Georgia is looking to establish a new programme with the International Monetary Fund (IMF), aiming to resume discussions in February after the current agreement with the Fund has been stalled since June 2023.
The country’s three-year $289 million Stand-By Arrangement (SBA), initially agreed upon in June 2022, was put on hold after proposed amendments to legislation regarding the management structure of Georgia’s central bank raised concerns about its independence.
Deputy Finance Minister Ekaterine Guntsadze told Reuters that Georgia is likely to seek a new programme as the current SBA nears its conclusion. She expressed optimism about restarting talks, potentially through a staff visit or a virtual mission, which could lay the groundwork for the next phase of engagement with the IMF.
An IMF-backed programme would provide much-needed financial stability to Georgia, a small nation of 3.7 million people that is navigating complex geopolitical tensions. The country’s international bonds have faced volatility following the October election, which saw the ruling Georgian Dream party win power, triggering protests and raising fears of the government’s tilt toward Russia.
While the government insists it aims to protect Georgia from external influence and avoid being drawn into the ongoing conflict between Russia and Ukraine, its European Union membership bid has been stalled due to concerns over democratic backsliding. Guntsadze remains optimistic that Georgia can secure a new IMF programme, citing the country’s strong macroeconomic performance and fiscal stability, though some political and structural challenges remain.