You're reading: World Bank allocates $60 million to Georgia

Tbilisi - The World Bank Executive Board of Directors has confirmed a $60 million loan for Georgia that will help implement measures to encourage competitiveness and economic growth, the World Bank in Tbilisi told Interfax.

The loan will be distributed by World Bank structure – the International Development Association for 25 years with a five-year grace period.

This is the first group of loans that will be allocated to increase competitiveness, which is one of the most important components of the cooperation strategy between the World Bank and Georgia in 2010-2013.

The aim of the loan is to help the Georgian government carry out planned reforms aimed at improving competitiveness through increasing export market and foreign investment access, at helping trade, improving the investment climate in energy and creating modern training systems and at encouraging efficient social spending by improving social welfare systems.

The World Bank board in May 2011 confirmed an interim report on implementation of the partnership strategy with Georgia in 2010-2013, in accordance with which it was decided to increase funding by $235 million to $630 million.

The World Bank has worked with Georgia since 1993. In that time it has allocated $1.62 billion for 52 projects.