Central and West Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 2,007.21
% of GDP (2019): 13.64%
% of Regional Total Package: 4.43%
Package Per Capita in USD: 537.98
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
Measure Amount (Local) Amount (USD) Details Update Source
01 - Liquidity Support info_outline GEL1,036,889,701 USD341,000,000
01A - Short-term lending info_outline
01B - Support policies for short-term lending info_outline

No amount/estimate: The National Bank of Georgia (NBG) announced measures to support capital and liquidity in the banking sector.

01C - Forex operations info_outline GEL1,036,889,701 USD341,000,000

(i) NBG has sold USD341 million in five interventions in the foreign exchange market, to prevent disorderly depreciation [update]; (ii) No amount/estimate: May 14, To ease lari liquidity pressures, the NBG started FX swap lines with banks and microfinance institutions in mid-April.

02 - Credit creation info_outline GEL930,000,000 USD305,847,382
02A - Financial sector lending/funding info_outline GEL600,000,000 USD197,320,891

May 7, Commercial banks will gain access to a long-term financial resource of GEL600 million.

02B - Support policies for long-term lending info_outline

(i) No amount/estimate: April 29, The National Bank of Georgia (NBG) reduced its policy rate by 50 bp; (ii) No amount/estimate: June 24, The NBG further reduced its policy rate by 25 bp; (iii) No amount/estimate: August 5, The NBG reduced its policy rate by another 25 bp, bringing the refinancing rate to 8%.

02C - Loan guarantees GEL330,000,000 USD108,526,490

GEL330 million credit guarantee scheme for business.

03 - Direct long-term lending info_outline
03A - Long-term lending info_outline
03B - Forbearance

No amount/estimate: Bank loan service holidays for individuals was prolonged for 3 more months for those borrowers who asked for extension.

04 - Equity support info_outline
05 - Government support to income/revenue GEL3,636,500,000 USD1,195,929,036
05A - Health GEL828,500,000 USD272,467,264

(i) May 7, Additional funds of about GEL350 million will be directed to health spending including lab testing and quarantine expenditures as well as increased costs associated with hospitalization, medical treatment, and medical supplies. (ii) GEL478.5 million for healthcare infastructure and other virus spread prevention costs.

05B - Non-health GEL2,808,000,000 USD923,461,772

No amount/estimate: (i) April 24, The ‘Anti-Crisis Economic Action Plan’ listed the government’s initiatives to support the population and businesses along with the measures already implemented or announced by the government, such as the payment for gas, electricity and utilities for the for users consuming up to 200 kW of electricity and/or up to 200 m3 natural gas monthly; (ii) The government introduced the State Program for Maintaining Prices of Primary Consumption Food Products. The program envisages subsidies for certain imported products to keep their local price stable (rice, pasta, buckwheat, sunflower oil, sugar, milk powder, beans, wheat, and wheat powder) for the period from 15 March to 15 May 2020; (iii) Bank loan service holidays for individuals; income and property tax holidays for hotels (until Nov 1, 2020); (iv) Within the frame of the new program “Co-financing Mechanism for Supporting Family-owned, Small and Medium-size Hotel Industries”, Enterprise Georgia (the agency of the Ministry of Economic and Sustainable Development of Georgia) will co-finance up to 80% of the annual interest rate on loans issued to family-owned, small and medium-sized hotels. As of September 4, this measure has been extended for another 6 months; (v) The custom clearance term for vehicles imported before 1 April 2020 was extended to 1 September 2020 for car importers; (vi) No amount/estimate: VAT refunds will become automatic and will accelerate; (vii) GEL2.589 billion in transfer payments to individuals, corporate subsidies, and tax relief; (viii) No amount/estimate: Starting from January 2021, the rule of indexation of pensions will be introduced. According to this rule, the pensions will increase by at least the rate of inflation, plus a premium depending on the pensioner's age; (ix) GEL160 million in one-time assistance to all children below 18; (x) GEL35 million to help students from vulnerable families to cover one semester of their university tuition; (xi) GEL24 million total benefits for the self-employed, who lost their job during the pandemic and applied for government assistance, but were refused, as they failed to provide required documents [update]; (xii) No amount/estimate: The government will cover utility costs from November to February for vulnerable sectors.

06 - Budget reallocation info_outline
07 - Central bank financing government
07A - Direct lending & reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received GEL2,016,002,528 USD662,999,027
08A - Swaps info_outline
08B - International loans/grants GEL2,016,002,528 USD662,999,027
08B1 - Asian Development Bank GEL341,565,455 USD112,330,000

(i) April, USD8.55 million (with USD59 million co-financed) as a guarantee under Trade Finance Program (Additional Financing); (ii) USD2.81 million (with USD0.19 million co-financed) as a loan under Trade Finance Program (Additional Financing); (iii) USD0.50 million under the TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases; (iv) May 28, USD100 million loan funded by the COVID-19 pandemic response option (CPRO) under ADB’s Countercyclical Support Facility; (v) June 3, Developing a Disaster Risk Transfer Facility in the Central Asia Regional Economic Cooperation Region (Additional Financing) - USD0.07million; (vi) June 25, Preparing the Second Domestic Resource Mobilization Program (Additional Financing) - USD0.1 million; (vii) June 30, Quality Jobs and the Future of Work - USD0.1 million; (viii) July 13, Addressing Health Threats in the Central, West, and East Asia Region - USD0.13 million; (ix) July 24, Due Diligence and Capacity Development of Trade Finance Program Banks - USD0.07 million.

08B2 - Other GEL1,674,437,074 USD550,669,027

(i) April 29, USD80 million provided by the World Bank under its Fast Track COVID-19 Facility; (ii) May 1, USD200 million provided by the IMF under its Extended Fund Facility; (iii) May 21, USD1 million in grants from UN agencies (USD175,000 from UNFPA, USD400,000 from UNDP, and USD425,000 from UNICEF) as part of the UN COVID-19 Response and Recovery Fund; (iv) May 22, EUR91.34 million from the Asian Infrastructure Investment Bank (AIIB) (co-financed by the World Bank) to finance Georgia’s health infrastructure and social protection measures, support early detection and confirmation of cases, as well as disease surveillance and strengthening of health system preparedness; (v) As of May 26, USD2.7 million to prepare laboratory systems, activate case-finding and event-based surveillance, support technical experts for response and preparedness, bolster risk communication, and more; (vi) The European Invesment Bank (EIB) and the Bank of Georgia have signed a guarantee agreement of up to EUR60 million backed by the InnovFin SME Guarantee Facility covering 50% of every loan disbursed by the Bank of Georgia; (vii) EUR45 million in additional financing for the Georgia Economic Management and Competitiveness Development Policy Operation (DPO). This supplemental development policy financing aims to support the Government of Georgia in covering an unanticipated financing gap that has arisen due to the impacts of the COVID-19 pandemic; (viii) July 21, EUR45 million from the AIIB's COVID-19 Crisis Recovery Facility to mitigate the negative economic and social impacts of COVID-19 and sustain the momentum of pre-pandemic reforms that support economic growth and resilience.

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown GEL500,000,000 USD164,434,076

May 7, GEL500 million will be provided to support businesses, including through the credit guarantee scheme. Financing for working capital will increase. This belongs in Measures 1A and 2C.

11 - Other Economic Measures
12 - Non-Economic Measures

(i) The government has declared a national state of emergency (lifted since May 22) and adopted containment measures, including social distancing, lock down of high-risk districts, closure of border crossing, travel ban for foreign visitors, quarantine for nationals returning to Georgia, closure of shops (other than groceries and gas stations) and schools. Georgian railways resumed June 15, with the passenger train routes: Tbilisi-Batumi, Tbilisi-Zugdidi, Tbilisi-Poti, Tbilisi-Ozurgeti, Tbilisi-Kutaisi. Georgian National Tourism Administration says local travelers are able to visit different parts of Georgia for tourism from today; re-opening of international tourism has been postponed to September, but with the requirement of holding valid PCR test results for all foreign arrivals [update]; (ii) A mandatory curfew is now in place, requiring the population to remain indoors from 21:00 to 06:00; (iii) All individuals must carry an identity document when outside of their dwelling (on foot or otherwise). Stricter restrictions on movement are in place for individuals aged 70 and above; (iv) Other forms of economic activity, including tourism, has come to a standstill. As of May 5, construction, production of construction materials, carwash, computer and equipment repair shops, and parks will open; (v) Effective 3 April 2020 to 10 May 2020, Temporary export ban on diagnostic or laboratory reagents on a backing, prepared diagnostic or laboratory reagents whether or not on a backing, etc.; (vi) Effective July 13, outdoor cultural events and indoor rehearsals are allowed. Public outdoor gatherings of less than 200 people is also allowed.