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EBRD praises Georgia’s progress
New strategy to address remaining challenges
Georgia has achieved significant achievements in economic reforms over the
past three years. Economic growth has been an impressive 9.3 per cent in 2005,
with a forecast of 7.5 per cent for this year.
This performance was led by strong growth in the industrial sector and
supported by many other sectors. A large-scale privatisation programme has
progressed well and the country’s fiscal situation has improved dramatically.
However, significant challenges remain, as the EBRD says in its latest
strategy for Georgia, now available on www.ebrd.com.
In its analysis, the Bank says Georgia still faces important transition
challenges including the restructuring and strengthening of the energy sector;
infrastructure investments; improvement of the business environment,
successful completion of the privatisation programme in a fair and transparent
manner, sustained efforts to fight corruption and measures to ensure financial
sustainability.
In accordance with Georgia’s needs the EBRD will
• in the financial sector continue to increase support to existing and new
partner banks in Georgia, especially focusing on trade finance and micro and
small enterprises. The EBRD will also seek new equity investments in local
banks and additionally support the development of the non-bank financial
sector (leasing, insurance, pension schemes);
• in the enterprise sector increase the funding of local businesses,
particularly micro, small and medium sized enterprises. It is expected that
the agribusiness sector will figure prominently given its importance to
Georgia’s economy;
• in the infrastructure sector invest in energy security and efficiency and
projects that strengthen the country’s essential infrastructure. Key sectors
will be power and energy as well as municipal and transit infrastructure
As of October 31, 2006, the EBRD had signed almost 70 investment projects
worth €400 million in the energy, transport, agribusiness, general industry
and banking sectors. Georgia is one of the countries included in the Early
Transition Countries Initiative, an innovative programme to foster investment
in the Bank’s less developed economies.
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