08230oam 22013934 450 991081557030332120240405053814.01-4983-9766-21-4983-0685-31-4983-7890-0(CKB)2670000000568109(EBL)1790706(SSID)ssj0001399034(PQKBManifestationID)11779217(PQKBTitleCode)TC0001399034(PQKBWorkID)11450218(PQKB)10812567(MiAaPQ)EBC1790706(Au-PeEL)EBL1790706(CaPaEBR)ebr10933640(CaONFJC)MIL645395(OCoLC)891446701(IMF)1GEOEE2014001(IMF)1GEOEA2014001(EXLCZ)99267000000056810920020129d2014 uf 0engurcnu||||||||txtccrGeorgia : Request for a Stand-by Arrangement1st ed.Washington, D.C. :International Monetary Fund,2014.1 online resource (95 p.)IMF Staff Country ReportsDescription based upon print version of record.1-4983-8206-1 1-322-14140-1 Cover; CONTENTS; BACKGROUND AND PERFORMANCE UNDER THE PREVIOUS PROGRAM; BOXES; 1. The Georgia 2020 Strategy; RECENT ECONOMIC DEVELOPMENTS; OUTLOOK AND RISKS; 2. EU-Georgia Association Agreement; PROGRAM OBJECTIVES AND POLICIES; 3. Potential Spillovers from Developments in Ukraine and Russia; A. Fiscal Policy; B. Monetary and Exchange Rate Policies; C. Financial Sector Policies; 4. Restoring Georgia's External Viability; D. Structural Reforms; PROGRAM MODALITIES; 5. Risk Assessment Matrix; STAFF APPRAISAL; FIGURES; 1. Macroeconomic Developments; 2. Fiscal Developments, 2009-143. Reserves and Exchange Rates, 2012-144. External Sector; 5. Monetary Indicators, 2012-14; 6. Financial Sector Developments; TABLES; 1. Macroeconomic Framework, 2012-19; 2a. General Government Operations, 2012-19; 2b. Quarterly General Government Expenditures and Balance; 3. Summary Balance of Payments, 2012-19; 4. Monetary Survey, 2012-14; 5. Accounts of the National Bank of Georgia, 2012-14; 6. External Vulnerability Indicators, 2012-19; 7. Indicators of Fund Credit, 2012-19; 8. External Financing Requirements and Sources, 2012-19; 9. Schedule of Prospective Reviews and Available PurchasesANNEXI. Debt Sustainability Analysis; APPENDIX; I. Letter of Intent; Attachment I. Technical Memorandum of Understanding (TMU); CONTENTS; RELATIONS WITH THE FUND; RELATIONS WITH THE WORLD BANK; RELATIONS WITH THE EUROPEAN BANK OF RECONSTRUCTION AND DEVELOPMENT; STATISTICAL ISSUESKEY ISSUES Context. Georgia’s previous Fund-supported program, which expired in April 2014, met most of its objectives, in particular by reducing Georgia’s external and fiscal imbalances. The program also helped preserve the central bank’s independence after the 2012–13 political transition and strengthened its inflation-targeting framework. However, over time it proved increasingly difficult to reconcile the program’s fiscal objectives with the new government’s policies of increasing social spending, especially after the economy slowed and revenues fell short in 2013. Also, despite the progress achieved under the program, macroeconomic challenges remain. The current account deficit and external debt are high, leaving the economy susceptible to shocks. Strong and inclusive growth is needed to reduce widespread poverty and high unemployment. More recently, the external outlook has worsened, opening up a balance of payments need in 2014. Program and its objectives. To address these challenges, the authorities request a new three-year SDR 100 million (67 percent of quota) Stand-by Arrangement to address an external financing need in 2014 related in part to the realignment of fiscal policies to more social spending. The program will facilitate Georgia’s external adjustment, reduce key macroeconomic vulnerabilities, rebuild policy buffers, and support growth. Program policies. In 2014, the program balances supporting domestic demand with the need to safeguard external stability. To reduce the output gap, fiscal policy provides a measured stimulus, while monetary policy remains accommodative. However, the authorities will tighten policies and allow the exchange rate to adjust if balance of payments pressures were to intensify. From 2015, the fiscal deficit will be reduced to keep public debt low and to create space for countercyclical policies. This consolidation will rely on raising revenue by broadening the tax base and containing current expenditure, while protecting pro-poor spending and public investment. Monetary policy will aim at price stability through improved inflation targeting. The program will seek to rebuild international reserves while encouraging greater exchange rate flexibility. Strengthening of the financial sector will continue, helped by the recommendations of the recent FSAP mission. The program also aims to contain risks from quasi-fiscal activities and support improvements in tax administration, and will complement the authorities’ reforms to strengthen the business environment, improve education and training, create jobs and reduce poverty and inequality.IMF Staff Country Reports; Country Report ;No. 2014/250FinanceGeorgia (Republic)Banks and BankingimfExports and ImportsimfForeign ExchangeimfPublic FinanceimfIndustries: Financial ServicesimfMacroeconomicsimfDebtimfDebt ManagementimfSovereign DebtimfInternational Lending and Debt ProblemsimfCurrent Account AdjustmentimfShort-term Capital MovementsimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfInternational economicsimfPublic finance & taxationimfFinanceimfBankingimfCurrencyimfForeign exchangeimfPublic debtimfExternal debtimfCurrent account deficitsimfLoansimfInternational reservesimfBalance of paymentsimfFinancial institutionsimfCentral banksimfDebts, PublicimfDebts, ExternalimfGeorgia (Republic)Economic conditionsStatisticsGeorgia (Republic)Politics and governmentGeorgiaimfFinanceBanks and BankingExports and ImportsForeign ExchangePublic FinanceIndustries: Financial ServicesMacroeconomicsDebtDebt ManagementSovereign DebtInternational Lending and Debt ProblemsCurrent Account AdjustmentShort-term Capital MovementsBanksDepository InstitutionsMicro Finance InstitutionsMortgagesInternational economicsPublic finance & taxationFinanceBankingCurrencyForeign exchangePublic debtExternal debtCurrent account deficitsLoansInternational reservesBalance of paymentsFinancial institutionsCentral banksDebts, PublicDebts, External330.94795DcWaIMFBOOK9910815570303321Georgia2664553UNINA