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Saturday, 23 June 2018


IMF strikes double blow

2011-11-07 11:57

IMF strikes double blow. 24099.jpeg

Greece's debt problems have put the EU on the verge of collapse. However, the financial storm, raging in the Old World, do not scare Georgian politicians. The representative of the International Monetary Fund in Georgia Edward Gardner has stated about allocation of next tranche for the new economic program of the Georgian government. At the same time he has acknowledged that Transcaucasian republic is exposed to a double risk because of the crisis in Europe. But the leaders of Georgia are not scared. After all, they won't pay out it.

In the spring, Tbilisi has already borrowed half a billion euros to refinance its previous debt. The money did not reach the country's agriculture, but got lost somewhere in the opaque inner calculations of Saakashvili's government. Fate of the second loan is also not entirely clear. Meanwhile, the debt of the country has exceeded its budget.

This in itself is unlikely to make Tbilisi camarilla moderate their appetites, but the Greek debt crisis broke out, and it became clear that the Europeans do not need another accommodation of Georgian bonds. At the same time, the stream of subsidies from Washington, over which hangs a real threat of technical default, has dramatically dried. And Saakashvili's henchmen had to look for other ways of manipulation the state budget.

However, the search was not long: the mission of the International Monetary Fund arrived to Tbilisi to develop condition of the regular credit line, which is scheduled for 2012-2013. You can imagine, what a predatory gleam appeared in the eyes of Mishiko's surroundings after it has arrived to the Georgian capital. But officials of international organizations well know how difficult it is to control financial flows in Transcaucasian republic. Therefore, this time, thay have agreed to provide funds only in case of emergency.

"The country is developing economic program, which includes various sources which in turn, will give financial resources, and implying international financial programs, donors, and so on. If one of these sources won't prove itself, they would be able to use the resource, allocated by the new IMF credit line", said the IMF representative in Georgia Edward Gardner at a briefing.

But the streamlining of the wording is unlikely to confuse someone. The functionaries of the regime know well how to draw up economic programs. During Saakashvili's reign they have invented many of them. But its result is always the same - failure and extra need for additional funding. Mr. Gardner is well aware that "various sources" won't allocate the money to Georgian authorities, so that "the use of the IMF credit line" is inevitable.

The storm, raging right now in global financial markets, won't bypass Sakartvelo. On the contrary, it will cause a double blow to Transcaucasian republic. "I think the whole world is entering a very difficult period, and it will have double effect on Georgia. The first is that the economy of target export countries won't grow as fast as in 2011. The second is that the accessability of private capital has greatly complicated due to the economic instability in Europe", said Gardner.

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