KfW supports Georgia in overcoming the COVID-19 crisis

Before the COVIDi-19 crisis, the Georgian government succeeded in establishing the small country on the "balcony of Europe" as an economic reform champion and a destination for international investors and tourists in the upper price segment. Thanks to early and drastic measures, Georgia has managed to withstand the Corona pandemic well by international standards. At the beginning of August there were only 1,197 confirmed cases of infection and 17 deaths. However, the economic consequences of the crisis are dramatic. A deep recession and a rapid increase in poverty in the country are expected for 2020.

KfW contributes to strengthening Georgia's crisis resilience

In response to the crisis KfW is supporting the strengthening of the crisis resilience of the Georgian economy in close coordination with the World Bank with a reform loan of EUR 180 million on behalf of the German federal government, which was signed on 7 August 2020. The agreed reform measures are an important prerequisite for preserving the substance of the Georgian economy during the crisis and for a rapid recovery after its end. Also in the medium term, the project strengthens Georgia's economic resilience in a sustainable manner and reduces vulnerability to economic shocks, among other factors through the adoption of the new insolvency legislation.

KfW finances a sustainable development of tourism in Georgia

At the same time KfW is also supporting Georgia in the long-term development of tourism based on sustainability. On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) KfW is financing the modernisation of the municipal infrastructure in the western Georgian Imereti region and in the Kazbegi region in the north of the country with a development loan of EUR 130 million. The national parks there, which have been improved with KfW support in recent years, are becoming increasingly popular with tourists.

Further information

Corona Aid in FC and how KfW implements it

KfW Story - An ecological treasure