Yerevan /Mediamax/. IMF urged Georgian authorities to consider measures to bolster depositor confidence and deal with possible systemic risks.

Mediamax reports that Takatoshi Kato, Deputy Managing Director and Acting Chair, said this, commenting on the decision to allocate $186.6mln for Georgia.

“The authorities are encouraged to use all the instruments of monetary policy, including the interest rate and reserve requirements, as part of their adjustment strategy. In this regard, the planned improvements in the central bank’s liquidity framework are timely, and should help enhance the effectiveness of interest rate policy”, IMF representative stated.

According to Kato, against the background of deterioration in Georgian banks’ loan portfolios, strong supervisory vigilance over the banking system will be crucial.

“The authorities are encouraged to consider measures to bolster depositor confidence and deal with possible systemic risks”, IMF representative stated.