The Bank's funds will be used to cover the country's budget deficit, which was the result of the collapse of the economy due to the coronavirus pandemic.

The Asian infrastructure investment Bank (AIIB) will provide Georgia with additional assistance in the fight against coronavirus in the amount of 45 million euros, according to a statement on the Bank's website.

The money is intended to mitigate the negative economic and social consequences of COVID-19, as well as support reforms aimed at economic growth and sustainability of Georgia.

According to the Bank, this loan will make up for an unforeseen financial deficit caused by the consequences of the COVID-19 outbreak, which could jeopardize Georgia's ongoing reforms under the economic management and competitiveness Program (EMCP).

"The loan provides emergency budget support so that the Georgian government can respond more effectively to the pandemic," said Konstantin Limitovsky, AIIB Vice President for investment operations.

According to him, by providing funding to support mitigation measures and ensure macroeconomic stability, the AIIB's decision will help minimize losses and put the country back on the path of recovery.

First credit during the pandemic

The AIIB granted Georgia its first loan of almost 91.4 million euros to fight the coronavirus in may this year.

The parties signed a loan agreement for the rapid response project against COVID-19. the Goal is to prevent, detect, respond to threats caused by the pandemic, and strengthen the national health system.

Funds are provided to support the health sector, strengthen the epidemiological capabilities of public health Centers, increase General testing capabilities, increase the availability of critical medical devices and equipment, and provide social and financial support to families and individuals directly or indirectly affected by COVID-19.

The financial resources allocated to the AIIB are part of the loan agreement "rapid response Project against COVID-19", issued by Georgia and the world Bank on may 1, under which the world Bank allocated the country $ 80 million.

The agreement with the AIIB is part of the financial support provided to Georgia by partner international donor organizations in the fight against the COVID-19 pandemic and further rehabilitation of the country's economy.

The Asian infrastructure investment Bank (AIIB) is a multilateral development Bank whose mission is to improve socio-economic outcomes in Asia. The headquarters is located in Beijing. The Bank started its operations in January 2016, and now the number of its members worldwide has increased to 102.

Sputnik-georgia.ru