IMF to boost loan package by 57% to US$ 1.2bn

The IMF and the Georgian authorities have reached a staff-level agreement to increase the fund’s lending package by US$ 420mn to US$ 1.2bn (from SDR 477mn to SDR 747mn at an approximate rate of US$ 1.6/SDR), or 497% of the country’s special drawing rights (SDR) quota. The stand-by arrangement has also been increased from 18 to 33 months, until June 2011.

The increase came in response to a Government request to cover expected BOP financing needs in 2010-2011. The IMF’s Board of Directors will examine the proposed increase next month. Galt & Taggart Securities)