The Asian Development Bank (ADB) has approved a $100 million grant for Georgia to help to stop spread’s novel coronavirus (COVID-19), reduce its impact on business, and help save the lives of the most vulnerable, especially to women and children.
Georgia began implementing measures in January to protect its fragile public health system, but the epidemic has had a significant impact on the economy. Travel limitations kicked the tourism sector, which recorded an almost 60% year-on-year decline in international visits in last March.
“As a major trade and tourism hub, COVID-19 poses a grave threat to the health and economic wellbeing of Georgia. We are fully committed to supporting Georgia’s response and this comprehensive package will help address the country’s immediate health and socioeconomic needs. It builds on more than a decade of cooperation between ADB and Georgia in fiscal management and social protection—which are key to the economy’s post-pandemic recovery,” stated ADB President Masatsugu Asakawa.
The COVID-19 Active Response and Expenditure Assistance (CARES) program will provide budget support to the government and help finance its comprehensive anti-crisis plan. This includes tax deferrals for more than 4,000 small and medium-sized tourism businesses and the payment of subsidized loans for at least 2,000 small and medium-sized hotels.
The credit will defend the vulnerable by helping to support the government’s social assistance measures. These involve temporary payments for up to 350,000 formal-sector workers who could misplace their jobs as a result of the pandemic, one-off payments for up to 250,000 informal or self-employed workers; subsidized utility bills for 1.2 million families; and a six-month price freeze on nine key food products.
