Tracking Georgia's Economic Recovery
GOVERNMENT'S SUPPORT MEASURES
The Government announced a series of support measures designed to mitigate the negative economic impact of COVID-19. The Government's
revised 2020 budget document was approved by Parliament in June 2020. The revised budget incorporates the fiscal parameters agreed with
the IMF, US$1.5 billion in donor funding and fiscal stimulus measures for businesses and households affected by the coronavirus pandemic.
Business support is at 3.8% of GDP and social assistance is at 2.8% of GDP in 2020 revised budget document. Government also plans to
introduce economic support measures in 2021 budget, with final draft to be available in December 2020.
5
SUPPORT TO BUSINESSES | 2020 BUDGET
Support package for businesses amounts to GEL 1.889 billion, or 3.8% of
GDP, and incorporates:
GEL 330 million for credit-guarantee scheme
GEL 600 million for local currency liquidity resources allocation to
commercial banks
GEL 180 million for support to agriculture sector, and construction
sector, including interest rate subsidies on mortgage loans
GEL 115 million for support to tourism sector, including subsidies on
loan interest payments and exemption of property tax payments for
hotels
GEL 45 million for subsidies on flights and quarantine services support
GEL 600 million additional VAT refund for businesses
GEL 20 million for various support measures
With the support of local banks, legal entities were given the
opportunity of loan restructuring
SUPPORT TO INDIVIDUALS | 2020 BUDGET
Social assistance package for individuals amounts to GEL 1.375 billion, or 2.8% of
GDP, and comprises: coverage of healthcare-related costs in respect of COVID-19;
healthcare system preparedness improvement; one-off compensation for self-
employed persons who lost their jobs; six-month compensation for private sector
employees who lost their jobs; income tax relief to businesses who retain workers
for six months; six-month compensation for vulnerable and large families, as well as
adults and children with disabilities; subsidies for three-month utility bill payments.
INTERNATIONAL SUPPORT
Georgian authorities have mobilised US$3.0 billion financing from the International
Monetary Fund (the "IMF") and other international partners (US, EU, World Bank,
KFW, AFD, EBRD, EIB, ADB, etc.) to respond effectively to the COVID-19 pandemic
associated economic crisis. Of this funding, US$1.5 billion is earmarked for the
public sector and US$1.5 billion for the private sector.
The IMF's financing is c.US$400 million, of which US$200 million was already
disbursed to the budget.
Source: MOFView entire presentation