Georgia and the International Bank for Reconstruction and Development (IBRD), part of the World Bank Group, have signed a financing agreement for the "Georgia Bank Resolution Preparedness" project. Under the program, the country will receive a credit line totaling $35 million.
The funds will be directed to support the Resolution Fund, which is responsible for carrying out recovery or resolution procedures for troubled banks. The creation of a pre-agreed financial resource will allow the fund to respond more quickly in the event of risks in the banking sector.
The Ministry of Finance of Georgia noted that cooperation with the World Bank will help improve the National Bank's bank resolution system and bring it in line with best international practices. The new credit line will serve as an additional tool to protect the financial system during the period when the fund's resources are being built up to the required level.