From the Executive Board

Pages123-126

Page 123

Following are excerpts of recent IMF press releases. The full texts are available on the IMF's web site (http://www.imf.org) under "news" or on request (fax only, please) from the IMF's Public Affairs Division (fax: (202) 623-6278).

Georgia: ESAF

The IMF approved the second annual loan under the enhanced structural adjustment facility (ESAF), in an amount equivalent to SDR 55.5 million (about $76 million), to support Georgia's economic program in 1997. The loan is available in two semiannual installments, the first of which will be available on April 4 of this year.

1997 Program

The key macroeconomic objectives of the 1997 program are to achieve a real GDP growth rate of at least 8-10 percent; bring down the 12-month inflation rate to 10-12 percent; further reduce the current account deficit to a bo ut 7 percent of GDP; and reach a level of gross official i n tern a ti onal re s erves equ iva l ent to 2.5 months of imports. To achieve these objectives, fiscal policy will aim at reducing the overall deficit, on a cash basis and including grants, to 3.5 percent of GDP in 1997 from 4.4 percent in 1996.

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Structural Reforms

The authorities are committed to accelerating the implementation of structural reforms. In addition to the reforms under way in the banking sector and in tax administra ti on , the agenda for 1997 includes restructuring the energy sector; pursuing an ambitious privatization program for medium-and large-scale enterprises; accelerating agricultural land reform; developing a legal framework for the privatization of urban and industrial land; and further developing the enforcement of existing laws and regulations.

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Addressing Social Needs

Since early 1995, the government has made continuous attempts to improve the standard of living of the population. The monthly minimum wage in the budgetary sector has quadrupled in real terms since January 1995, and average real pensions have doubled over the same period. Several measures have already been implemented to improve the targeting of the social safety net, including a flat-rate pension system and a new assistance program for the disabled. The government intends to continue to increase the share of budgetary outlays on education in the next few years, and has embarked on an ambitious health care reform program.

Georgia joined the IMF on May 5, 1992, and its quota is SDR 111.0 million (about $153 million). Its outstanding use of IMF financing currently totals SDR 133.2 million (about $183 million).

Press Release No. 97/13, March 24

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Kyrgyz Republic: ESAF

The IMF approved the third annual loan under the enhanced structural adjustment facility (ESAF), in an amount equivalent to SDR 32.3 million (about $44 million), to support the Kyrgyz Republic's...

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