Georgian Finance Minister reaffirms Georgia’s “full support” for Ukraine during IMF discussion

Georgia: In a discussion organised by the International Monetary Fund on Tuesday, April 26, Georgian Finance Minister Lasha Khutsishvili reaffirmed Georgia’s “full support” for Ukraine amid the ongoing Russian-Ukrainian conflict.

The discussion, which was held in digital format, took place between the finance ministers and chiefs of the central bank of the Caucasus as well as Central Asia.

Moreover, the meeting, which was led by Kristalina Georgieva, the Managing Director of IMF, focused on the ongoing crisis in Ukraine, sanctions imposed on Russia by several foreign countries, as well as the impact of the armed conflict on the economies of the Caucasus and Central Asia.

Despite the challenges, Khutsishvili stated that Georgia would continue to pursue its reform plan. The Minister also emphasised the necessity of establishing a new three-year programme with the IMF, which he claims would assist the country in maintaining macroeconomic stability.

Along with the finance ministers, the President of the National Bank of Georgia (NBG), Koba Gvenetadze, also participated in the discussion.

Apart from this, at a Columbia University conference, Koba Gvenetadze also discussed the necessity for central banks’ “vigilance” and monetary authorities’ “strong reaction” to sustained high inflation.

The NBG’s head, speaking at the annual conference Challenges and Responses to Inflation and Market Fallouts from Emerging Market Economies, noted that inflation had been rising globally before Russia invaded Ukraine in February and that supply-demand mismatches and rising commodity prices had been “pushing inflation up” since early 2021.