The Foreign Relations Committee approving the Agreements for Ratification

12 Jun 2020
The Foreign Relations Committee approving the Agreements for Ratification

The Committee discussed the financial agreement submitted for ratification by the Deputy Finance Minister, Giorgi Kakauridze – the Loan Agreement between Georgia and ADB (ordinary transactions) (COVID-19 emergency response and expenditure supportive program); and the Loan Agreement between KfW, Frankfurt am Main, and Georgia represented by the Finance Ministry (“Debtor”) (policy-based loan (PBL) III).

The Government has held the negotiations in April with the international financial institutions on raising 1.5 billion USD.

The hereof financial resource will facilitate in pandemic preventive measures. The first agreement is the part of the negotiations envisaging allocation of 92.3 ml. EURO with the term of 10 years with the interest rate based on 6-month EURIBOR, plus 0.5% fixed margin. It is noteworthy that the EURIBOR is at a negative point and hence, the interest rate is under 0.5%. As to the target – it is the budget-supportive credit and shall be consumed on fulfillment of the anti-crisis plan. The second agreement also envisages the allocation of a loan of 90 ml EURO and is the reform-based loan. The loan term is 15 years and the interest rate constitutes 0.8%. The amount also constitutes the budget-supportive agreement and shall be directly introduced to the budget”, - the reporter noted.

The Committee approved the documents.

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  • The Foreign Relations Committee approving the Agreements for Ratification, June 12, 2020