Georgia Capital Shareholder and Market Opportunity Overview slide image

Georgia Capital Shareholder and Market Opportunity Overview

Budget - GEL 3.5 billion (1st stage) 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 donors (incl. US$ 450m from IMF): Economic Plan Budget - GEL 1.1 billion (2nd stage) US$1.5 billion intended for the private sector US$1.5 billion for the public sector Social aid MM GEL 1.03 billion Social aid * GEL 545 million Economic support and business aid GEL 2.1 billion Anti-pandemic + GEL 0.35 billion Economic support and business aid GEL 515 million measures Monetary policy Easing non-price credit conditions (LTV, PTI, etc.); Intervening in the FX market (US$ 1.12 bn sold since March 2020 up to April 2021, including US$873 million in 2020); Monetary policy rate reduced from 9.0% to 8.0%, but increased to 9.5% in March-April 2021 due to price pressures; Introducing US$ 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 measures - - Sectoral special support packages for tourism, 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 PUBLIC DEBT RISING TO C.60% OF GDP BY THE END OF 2020 (41% AT THE END OF 2019) 5
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