IMF: Georgian government will subside those who lost jobs at the amount of GEL 150 per month for 6 months
IMF: Georgian government will subside those who lost jobs at the amount of GEL 150 per month for 6 months

The Georgian government will provide a subsidy to those who lost jobs due to the recent developments at the amount of GEL 150 per month per person for 6 months, – This is stated in the report published by the International Monetary Fund, which summarizes the key economic responses governments are taking to limit the human and economic impact of the COVID-19 pandemic. The tracker includes 193 economies.

“The government announced a GEL 2 bn (4 percent of GDP) support package on April 1 (which enhanced the GEL 1 billion package announced on March 13). The initial package included suspension of property and income taxes for the tourism sector until November 2020, provision of interest subsidy to small and medium sized hotels, increase in credit guarantee scheme, acceleration of VAT refunds, and higher capital spending. The initiative also includes government payments for gas, electricity, water and cleaning bills for poor segments of the population who consume less than 200 kw of electricity and 200 cubic meters of natural gas March-May, 2020. GEL 351 million will be directed to health spending including lab testing and quarantine expenditures as well as increased costs associated with hospitalization, medical treatment, and medical supplies. Unemployment subsidy will be provided to those who lost jobs due to the recent developments at the amount of GEL 150 per month per person for 6 months. This will be directed to those employees who used to pay the income tax and stopped it, as the businesses were closed. Those businesses that retain employees will also get a subsidy; The government will provide a subsidy for imports of 9 basic commodities (incl flour, wheat, pasta, rice, oil, sugar, milk powder, beans, buckwheat) and will also create a stock pile of these commodities at a total cost of GEL50 million. The government is considering to enact a credit guarantee scheme to support economic recovery during the post COVID-19 period” – the report by IMF reads.

The Georgian government will make a statement on compensation for the unemployed citizens tomorrow.

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