Georgia strengthens financial sector resilience with World Bank support

The Ministry of Finance on Thursday said that Georgia and the International Bank for Reconstruction and Development signed an agreement providing $35 million in financial resources for the “Banking Resolution Preparedness Project in Georgia”.

The agreement was signed by Georgian Finance Minister Lasha Khutsishvili and World Bank Regional Director for the South Caucasus Roland Price.

The signing ceremony was attended by Natia Turnava, the governor of the National Bank of Georgia, Deputy Finance Minister Ekaterine Guntsadze, First Vice President of the National Bank of Georgia Ekaterine Mikabadze, as well as representatives of the Ministry of Finance, the National Bank, and the World Bank.

According to the Ministry, the project approved by the World Bank will establish a pre-arranged $35 million credit line for the Resolution Fund.

“With the World Bank’s involvement, the activities implemented under the project, as well as future planned measures, will contribute to further improving the National Bank’s resolution framework, increasing its effectiveness, and bringing it closer to the best international practices”, the statement said.

The Ministry added that the credit line will serve as an additional financial protection mechanism for the Resolution Fund while it is being replenished to its target level and will support the timely and effective implementation of resolution processes.