Asian Development Bank (ADB) President Masatsugu Asakawa and Georgia’s Minister of Finance Ivane Matchavariani today discussed how ADB can support Georgia in its fight against the COVID-19 pandemic.
The Asian Development Bank reports about this.
“ADB is fully committed to supporting Georgia at this unprecedented time and we are considering every option to ensure support is provided quickly and effectively,” said Mr. Asakawa. “ADB is ready to work with the government and key partners on countercyclical support that will enable it to meet the needs of the people most affected. Significant efforts are also underway to ensure that we can provide further support to the private sector.” – Asian Development Bank (ADB) President Masatsugu Asakawa stated.
Mr. Matchavariani expressed his appreciation for ADB’s ongoing support and for the organization’s proactive communication with Georgia and its other members. “Amid the global crisis caused by the pandemic, the continued support of international financial institutions is vital,” he added.
As information released by ADB notes, Georgia is experiencing a dual shock from the direct impact of the pandemic and indirect effects of lower oil prices. The impact will be particularly severe on tourism and other services. Lower oil prices are negatively affecting remittances from neighboring countries and trade flows are weakening as growth slows in these countries.
Mr. Asakawa recognized that Georgia has been a leading reformer and this has positioned the country well to deliver its response to the pandemic, including through tax concessions to the hard-hit tourism industry, capital expenditures to provide economic stimulus, and expanding access to funding for micro, small, and medium-sized enterprises and private individuals. These measures will ensure that Georgia is able to use resources effectively and lay the foundation for a quicker recovery.
On 18 March, ADB announced an initial package of approximately $6.5 billion to address the immediate needs of its developing member countries, including Georgia, as they respond to the COVID-19 pandemic. ADB stands ready to provide further financial assistance and policy advice down the road whenever the situation warrants.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.