Coronavirus: Government of Georgia to Support Declining Tourism Sector

The Government of Georgia (GOG), National Bank of Georgia (NBG) and commercial banks will take active measures in coordination to mitigate the negative impact of a novel coronavirus (COVID-19) on the tourism sector of the country. Agreement was reached at a meeting of Giorgi Gakharia, Prime Minister of Georgia, and Chief Executive Officers (CEOs) of commercial banks today.

The economic consequences of COVID-19 were discussed at the meeting with a particular focus on such vulnerable sectors affected by the novel coronavirus as tourism. The intention of the banking sector and authorities is to carry our coordinated measures to mitigate the economic consequences that may potentially stem from the spread of COVID-19.

It was decided to establish an effective working mechanism with the engagement of an economic team of GOG, NBG and the banking sector to create an action plan with specific steps in support of the tourism sector in the coming days.

The Prime Minister of Georgia noted that GOG regards the banking sector as one of its key allies in this process and stands ready for effective cooperation.

The banking sector has made its readiness clear to provide maximum support in various forms if and when the tourism sector representatives encounter certain problems in servicing their loans as a result of COVID-19.

Participants of the meeting have agreed that the most pressing task today is to keep as much cash resources in the vulnerable sectors as possible to avoid obstacles in the implementation of current projects. GOG, NBG and the commercial banking sector will take coordinated response measures towards this end.

Apart from an impact on the tourism sector, it was noted that COVID-19 may directly affect the financial and banking sector itself, though it was also noted that it is currently in the position to minimize such negative externalities.