Georgia and the International Bank for Reconstruction and Development (IBRD), part of the World Bank Group, have signed a financing agreement for the "Georgia Banking Resolution Preparedness" project. Under the program, the country will receive a credit line of $35 million.
The funds will support the Resolution Fund, which is responsible for conducting recovery or resolution procedures for troubled banks. The creation of a pre-agreed financial resource will allow the fund to respond more quickly in case 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 banking 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 of building up the fund's resources to the required level.
