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Linkage to Country/Regional Strategy |
The intervention is consistent with the Georgia Interim Operational Strategy and the overall financial sector strategy, as the loan to BoG will support private sector development by increasing access to financing for SMEs. The intervention also ties into the Georgia Growth Recovery Support Program, which outlines current difficulties in the Georgian banking sector and their impact on the broader economy. Again, the proposed loan seeks to provide systemic support to the Georgian banking sector during this challenging period, not only by providing financing but also by building confidence in the broader financial sector.
In addition, the proposed loan is also aligned with ADB''s poverty reduction strategy, which states that ADB seeks to promote sound and efficient banking systems and capital markets, since these are seen as indispensable for macroeconomic stability, mobilizing savings, and ensuring availability of long-term financing, an essential requirement for pro-poor growth.
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