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Government Must Ensure NBG’s Independence — IMF

In response to press inquiries, Mr. Azim Sadikov, IMF Resident Representative in Georgia has disseminated the following comment:

The International Monetary Fund has not taken, and cannot take a view on the issues related to justice and individuals’ relation with the law. This is not our mandate. In its dialogue with the Georgian authorities, the IMF has consistently emphasized the importance of respecting and preserving NBG independence. Violating NBG independence would weaken the institution, undermine the credibility of its monetary and financial sector policies, and threaten investor confidence.

The authorities have reaffirmed repeatedly their commitment to NBG independence. This has allowed the Fund to support Georgia with economic assistance programs, and most recently through the Stand-By Arrangement launched in July 2014. The IMF is concerned that recent proposals to amend the central bank law would put NBG independence at risk.

We recommend that proper consultations with key stakeholders and international experts take place now. If these consultations result in proposals to amend the central bank law, any amendments should preserve the independence of the NBG and ensure that its governance and operations are in line with international best practice. The IMF stands ready to provide assistance in this area.