IMF BELIEVES STATE BUDGET CUT DOWN INEVITABLE IN GEORGIA THIS YEAR

Cut down of the state budget of Georgia in 2001 is inevitable and it must be implemented, the head of the permanent representative office of the International Monetary Fund in Georgia Christopher Lane believes.

Commenting to the results of the July visit of the IMF mission to Tbilisi, Christopher Lane told journalists Wednesday that the figure intended to be cut down in the state budget-2001 has not been determined yet, but it will probably be from 40 to 60 million GEL.

Lane stressed that the deficit of revenues, which were planned to be received from privatization will have to be added to that amount as well. Only 25 million GEL will be received from privatization instead of the planned 80 million, IMF representative said.

Moreover, Georgia will not receive the planned amount of credits from the IMF, which have already been included in the budget. The transfers will only go up to $ 32.5 million.

The semiannual state budget revenues in Georgia have been underfulfilled by over 59 million GEL. According to Lane, IMF management still demands for the increase of electricity tariffs in Georgia. Only that will allow to repay the debts of the energy sector, which currently total approximately $ 200 million.

IMF also demands for the abolishment of the parliamentary decree on the prohibition till January 2, 2002 of the export of lumber from Georgia, Christopher Lane said. According to him, all that will be considered when the Council of Directors of the IMF will discuss this October the resumption of the poverty reduction program in Georgia.