IMF: Stand-by Arrangement Delayed, Not Suspended

04-10-2023 10:55:15 Economics

On October 4, the IMF Spokesperson told the Voice of America (VoA) that the IMF-supported stand-by arrangement with Georgia is delayed rather than suspended. According to the Spokesperson, the approval of the second review has been delayed due to the IMF’s disapproval of the change in the management structure and the recent decision on amendments to the sanctions regulations of the National Bank of Georgia (NBG).

The Spokesperson stated that the NBG’s structural changes “contradict the recommendations of the IMF team and jeopardize the bank’s independence and credibility.” Speaking about the NBG NBG’s change in the regulations on the application of international sanctions to Georgian citizens, the IMF spokesperson said it “raises concerns about financial stability, which is the primary objective of this program.”

“Given the new processes that have evolved since the first review of the program, the team and management are taking additional time to find a way to ensure that the program’s objectives are still met,” – explains the IMF.

On September 19, the National Bank of Georgia announced that by the decision of the Bank’s Acting President, international sanctions will not apply to a Georgian citizen who has not been found guilty by a Georgian court. With this change, the National Bank of Georgia reversed its prior decision and restored access to bank assets and the right to carry out financial transactions to Otar Partskhaladze, after he was sanctioned by the United States Treasury Department.


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