Central and West Asia
Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline||GEL2,633,274,137||USD866,000,000|
|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||GEL2,633,274,137||USD866,000,000||
(i) NBG has sold USD866 million in five interventions in the foreign exchange market, to prevent disorderly depreciation [update]; (ii) No amount/estimate: 14 May 2020, 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||
7 May 2020, Commercial banks will gain access to a long-term financial resource of GEL600 million.
|02B - Support policies for long-term lending info_outline|
|02B1 - Interest rate reductions||
(i) No amount/estimate: 29 April 2020, The National Bank of Georgia (NBG) reduced its policy rate by 50 bps from 9% to 8.5%. On 24 June 2020, The NBG further reduced this rate to 8.25%. On August 5, The NBG reduced its policy rate by another 25 bp, bringing the refinancing rate to 8%, where it has since remained unchanged.
|02B2 - Other policies to support long-term lending|
|02C - Loan guarantees||GEL330,000,000||USD108,526,490||
24 June 2020, GEL330 million in a credit guarantee scheme to help businesses cope with the pandemic.
|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, now until 1 November 2020.
|04 - Equity support info_outline|
|05 - Health and income support||GEL3,636,500,000||USD1,195,929,036|
|05A - Health support||GEL828,500,000||USD272,467,264||
(i) 7 May 2020, 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) 24 June 2020, GEL478.5 million for healthcare infastructure and other virus spread prevention costs.
|05B - Income support||GEL2,763,000,000||USD908,662,705||
On 24 June 2020, Parliament approved amendments to the government's Anti-Crisis Plan, consisting of: item (ii) in 5A, items (i) to (iv) in 5B2, items (i) to (vii) in 5B3, items (i) and (ii) in 5B4, and item (i) in 5C. On August 6, the Prime Minister unveiled additional measures, consisting of: items (viii) to (xii) in 5B3.
|05B1 - Tax and contribution deferrals and policy changes|
|05B2 - Tax and contribution rates reduction||GEL1,495,000,000||USD491,657,888||
(i) 24 June 2020, GEL1.2 billion in VAT refunds; (ii) No amount/estimate: Income and property tax holidays for hotels (until Nov 1, 2020); (iii) GEL250 million in forgone income tax from waivers on low-income citizens. Monthly salaries up to GEL1500 will have the first GEL750 fully exempted from income tax; (iv) GEL45 million in forgone income tax from exemptions granted to touristic enterprises.
|05B3 - Wage support and subsidies to individuals and households||GEL1,178,000,000||USD387,406,683||
(i) GEL450 million in monthly unemployment subsidies of GEL200 per person for 6 months; (ii) GEL170 million in subsidies for gas, electricity, and utilities for users consuming up to 200 kW of electricity and/or up to 200 m3 natural gas monthly; (iii) GEL61 million in additional assistance to low-income families; (iv) GEL24 million in assistance to disabled people and their children; (v) GEL40 million to purchase houses for refugees; (vi) GEL139 million for 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); (vii) No amount/estimate: Starting from January 2021, pensions will be indexed to at least the rate of inflation, with additional increases for pensioners aged 70 and above. Regardless of the actual benchmark rates, the pension increase will be at least GEL20 for the pensioners below 70 and above GEL25 for pensioners above age 70; (viii) GEL160 million in one-time assistance of GEL200 to all children below 18; (ix) GEL35 million to cover 1 semester of university tuition for children from low-income families; (x) No amount/estimate: The government will cover utility costs from November-February for low-income families; (xi) GEL75 million in one-time assistance of GEL300 per person to self-employed persons; (xii) GEL24 million in another batch of one-time assistance of GEL300 per person to self-employed persons.
|05B4 - Subsidies to business||GEL90,000,000||USD29,598,134||
(i) GEL70 million in interest subsidies, co-financing up to 80% of the interest rate on loans issued to family-owned, small and medium-sized hotels; (ii) GEL20 million in additional micro-grants.
|05B5 - Indirect income support|
|05B6 - No breakdown (income support)|
|05C - No breakdown (health and income support)||GEL45,000,000||USD14,799,067||
(i) GEL45 million to cover costs of organizing quarantine spaces, as well as sponsoring flights that returned Georgians from different parts of the world.
|06 - Budget reallocation info_outline|
|07 - Central bank financing government|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||GEL2,779,293,329||USD914,021,062|
|08A - Swaps info_outline|
|08B - International loans/grants||GEL2,779,293,329||USD914,021,062|
|08B1 - Asian Development Bank||GEL1,000,583,357||USD329,060,000||
(i) April, Guarantee under Trade Finance Program (Additional Financing) - USD18.4 million (with an additional USD71.69 million co-financed); (ii) April, Loan under Trade Finance Program (Additional Financing) - USD2.81 million (with an additional USD0.19 million co-financed); (iii) TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases - USD0.50 million; (iv) 28 May 2020, COVID-19 Pandemic Response Option (CPRO) under ADB’s Countercyclical Support Facility - USD102.24 million; (v) 3 June 2020, Developing a Disaster Risk Transfer Facility in the Central Asia Regional Economic Cooperation Region (Additional Financing) - USD0.07million; (vi) 25 June 2020, Preparing the Second Domestic Resource Mobilization Program (Additional Financing) - USD0.1 million; (vii) 30 June 2020, Quality Jobs and the Future of Work - USD0.1 million; (viii) 13 July 2020, Addressing Health Threats in the Central, West, and East Asia Region - USD0.13 million; (ix) 24 July 2020, Due Diligence and Capacity Development of Trade Finance Program Banks - USD0.06 million; (x) 6 October 2020, Capacity Development for the Supply Chain Finance Program - USD0.02 million; (xi) 29 October 2020, Fiscal Resilience and Social Protection Support Program - USD201.74 million; (xii) 5 November 2020, Creating Investable Cities in Post-COVID-19 Asia-Pacific: Enhancing Competitiveness and Resilience through Quality Infrastructure - USD0.11 million [update]; (xiii) 18 November 2020, Supporting Startup Ecosystem in the Central Asia Regional Economic Cooperation Region to Mitigate Impact of COVID-19 and Support Economic Revival - USD 0.05 million; (xiv) 26 November 2020, Addressing Health Threats in the Central, West, and East Asia Region (Additional Financing) - USD0.03 million [update]; (xv) 3 December 2020, COVID-19 Emergency Response - USD2.5 million [update]; (xvi) 10 December 2020, Preparing the Second Domestic Resource Mobilization Program - USD0.2 million. [update]
|08B2 - Other||GEL1,778,709,972||USD584,961,062||
(i) 29 April 2020, USD80 million provided by the World Bank under its Fast Track COVID-19 Facility; (ii) 1 May 2020, USD200 million provided by the IMF under its Extended Fund Facility; (iii) 21 May 2020, 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) 22 May 2020, 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) 26 May 2020, 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) 21 July 2020, 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; (ix) 21 December 2020, EUR25 million from the European Investment Bank (EIB), the lending arm of the European Union, to expand a credit line for Georgian small and medium-sized enterprises (SMEs) and mid-caps available at TBC Bank JSC; the operation will help accelerate the recovery of the national economy from the COVID-19 pandemic [update]; (x) 22 December 2020, EUR6 million loan from the European Bank for Reconstruction and Development (EBRD) TBC Leasing to broaden access to finance for MSMEs, especially those in the regions. [update]
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown||GEL500,000,000||USD164,434,076||
7 May 2020, 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||
(i) June 24, The custom clearance term for vehicles imported before 1 April 2020 was extended to 1 September 2020 for car importers; (ii) From 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; (iii) Import ban of live animals from China; (iv) Export ban on masks; (v) VAT exemption for the import of some medical goods.
|12 - Non-Economic Measures|
|12A - Measures affecting travel and transport (local and international)||
(i) From 21 March 2020 to 22 May 2020, The country was under a state of emergency closing domestic and international borders. Domestic tourism reopened on 15 June 2020, while international tourists were accepted starting September; (ii) Under the state of emergency, citizens were also subject to a 9pm-6am curfew. When going outside, they were also expected to carry identity documents at all times; (iii) As of 9 November 2020, curfew will be re-imposed from 10pm-5am due to a recent resurgence in cases. The curfew between will be maintained until end-January 2021. Development of the pandemic curve will guide the government’s further decisions.
|12B - Measures affecting business and workplace||
(i) From 21 March 2020 to 22 May 2020, The country was under a state of emergency mandating social distancing, mask wearing, as well as the closure of schools and shops (other than groceries and gas stations). (ii) June 8, Restaurants with indoor seating, selected hotels, and currency exchange offices were allowed to reopen; (iii) 13 July 2020, Outdoor cultural events and indoor rehearsals are allowed; (iii) As of 15 October 2020, Restaurants and entertainment facilities are banned from operating past 10pm. Schools and universities in large cities are also required to hold online classes until 25 November 2020.
|12C - Others||
(i) On 15 June 2020, The government released an expanded list of high-risk groups who would be able to avail mandatory, free-of-charge COVID-19 testing; (ii) During 3-15 January 2021, there will be an official public holiday, which means that none of the public or private organizations will work, except for banks and strategic state services. All the containment measures effective during November 28 and December 24 will be reinstituted.