3Q20 Financial Performance

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: MOF

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