FY20 Results and Strategy Overview
GOVERNMENT MEASURES
GEORGIA
CAPITAL
ACCUMULATED BUFFERS AND INTERNATIONAL SUPPORT HAVE ALLOWED THE GOVERNMENT TO LAUNCH SIZEABLE MEASURES
US$ 3 billion funding facility
US$ 3 billion (predominantly loans) from international
Economic Plan
Budget - GEL 3.5 billion (1st stage)
Budget - GEL 1.1 billion (2nd stage)
US$1.5 billion intended for the private sector
US$1.5 billion for the public sector
Social aid
MM GEL 1.03 billion
Social aid * GEL 545 million
Economic
donors (incl. US$ 450m from IMF):
Monetary policy
Easing non-price credit conditions (LTV, PTI, etc.);
Intervening in the FX market (US$ 953 million sold in
March-January, including US$873 million in 2020);
Monetary policy rate reduced to 8.0%;
Introducing US$ 400 million currency swap facility for
the financial sector to provide GEL liquidity;
Reduced capital conservation buffer (2.5% of Risk
Weighted Assets) and 2/3 of currency induced credit
risk buffer total of GEL 1.6 billion;
Temporary liquidity instrument to support credit to
SMEs;
Moratorium announced on new regulatory activity.
support and
business aid
GEL 2.1 billion
Anti-pandemic
measures
+
GEL 0.35 billion
Economic
support and
business aid
GEL 515 million
tourism,
Support measures
-
-
-
for
Sectoral special support packages
agriculture and real estate sectors;
Subsidies for utility bills, basic product prices and
construction materials;
Loan restructuring for all businesses;
VAT returns and long-term funds for banks;
Extra funding to support business, including a credit
guarantee scheme (GEL 2bln);
Tax deferrals for car importers;
Social aid programs to address job losses;
Pension indexation from Jan- 21;
GEL 200 transfers to families for every child under 18;
Extended into 2021:
-
Utility bills;
Income tax exemption;
Unemployment and social aid;
Deferred
2020 income tax waived and 2021
property tax exempted for tourism;
New support package for restaurants.
PRUDENT PRE-CRISIS FISCAL PRACTICE ENSURED A STRONG POSITION TO BORROW TO FIGHT THE PANDEMIC, WITH MOF EXPECTING PUBLIC DEBT TO RISE TO
AROUND 60% OF GDP BY THE END OF 2020 (41% AT THE END OF 2019)
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