Georgia's Ministry of Finance has signed an agreement with the International Bank for Reconstruction and Development (IBRD) for a $35 million loan to support the country's Bank Resolution Preparedness Project.
The ministry said the project, approved by the World Bank, provides for the establishment of a pre-arranged $35 million credit line for the National Bank of Georgia's resolution fund, Caliber.Az reports, citing Georgian media.
It noted that the World Bank's involvement and the measures planned under the project will help further improve the National Bank's resolution fund mechanism, increase its effectiveness, and bring it closer to international best practices.
The credit line will serve as an additional financial safeguard for the resolution fund while it is being built up to its target level.
The resolution fund is a dedicated financial reserve financed through regular contributions from banks and other credit institutions.
It is designed to facilitate the orderly resolution of troubled banks, safeguard financial stability, and reduce the need for taxpayer-funded bailouts.
By Bakhtiyar Abbasov
