Front Matter Page
© 2003 International Monetary Fund
November 2003
IMF Country Report No. 03/347
Georgia: Selected Issues and Statistical Appendix
This Selected Issues paper and Statistical Appendix for Georgia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on September 17, 2003. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Georgia or the Executive Board of the IMF.
The policy of publication of staff reports and other documents by the IMF allows for the deletion of market-sensitive information.
To assist the IMF in evaluating the publication policy, reader comments are invited and may be sent by e-mail to publicationpolicy@imf.org.
Copies of this report are available to the public from
International Monetary Fund. • Publication Services
700 19th Street, N.W. • Washington, D.C. 20431
Telephone: (202) 623-7430. • Telefax: (202) 623-7201
E-mail: publications@imf.org • Internet: http://www.imf.org
Price: $15.00 a copy
International Monetary Fund
Washington, D.C.
Front Matter Page
INTERNATIONAL MONETARY FUND
GEORGIA
Selected Issues and Statistical Appendix
Prepared by a team comprising Paulo Neuhaus (head), Patricia Brukoff, Jonathan Dunn, Wojciech Maliszewski, and Bert van Selm (all EU2), Lisandro Abrego (PDR), Edward Frydl (MFD), and Alejandro Hajdenberg (FAD)
Approved by the European II Department
September 17, 2003
Contents
I. Inflation in Georgia
A. Macroeconomic Developments
B. Model of Inflation
C. Conclusions
Appendix I. Derivation of the Long-Run Price Equation
Appendix II. Estimation and Testing of the Model
Text Tables
I-1. The Error-Correction Equation for Inflation
I-2. Tests for the Number of Cointegrating Vectors between p, m, e and y
Figures
I-1. Lari/U.S. Dollar Exchange Rate and NBG Interventions at the Tbilisi Interbank Currency Exchange
I-2. Logarithmic Changes in Price Level d(p) and Lari/U.S. Dollar Exchange Rate d(e)
I-3. Recursive Estimates of Long-Run Coefficients of the Price Equation
I-4. p: Actual Values, Fitted Values and Residuals from the Error-Correction Model
Front Matter Page
© 2003 International Monetary Fund
November 2003
IMF Country Report No. 03/347
Georgia: Selected Issues and Statistical Appendix
This Selected Issues paper and Statistical Appendix for Georgia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on September 17, 2003. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Georgia or the Executive Board of the IMF.
The policy of publication of staff reports and other documents by the IMF allows for the deletion of market-sensitive information.
To assist the IMF in evaluating the publication policy, reader comments are invited and may be sent by e-mail to publicationpolicy@imf.org.
Copies of this report are available to the public from
International Monetary Fund. • Publication Services
700 19th Street, N.W. • Washington, D.C. 20431
Telephone: (202) 623-7430. • Telefax: (202) 623-7201
E-mail: publications@imf.org • Internet: http://www.imf.org
Price: $15.00 a copy
International Monetary Fund
Washington, D.C.
Front Matter Page
INTERNATIONAL MONETARY FUND
GEORGIA
Selected Issues and Statistical Appendix
Prepared by a team comprising Paulo Neuhaus (head), Patricia Brukoff, Jonathan Dunn, Wojciech Maliszewski, and Bert van Selm (all EU2), Lisandro Abrego (PDR), Edward Frydl (MFD), and Alejandro Hajdenberg (FAD)
Approved by the European II Department
September 17, 2003
Contents
II. Energy Sector Reforms in Georgia
A. Overview of Reforms
Tariffs, collection rates, and quasi-fiscal subsidies
B. Energy Sector External Debt and Payment Arrears
C. Taxation and Budgetary Allocations for the Power Sector
D. Experience of Other Transition Countries
Text Tables
II-l. Energy Sector Quasi-Fiscal Losses
II-2. External Debt of the Energy System, end-2002
II-3. Cross-Agency Debt of the Electricity System, end-2002
Figures
II-1. Electricity Production
II-2. Natural Gas Consumption
II-3. Collection Rates from Direct Customers of the Wholesale Electricity Market
II-4. AES Collection Rates
II-5. Collection Rates from Budgetary Organizations
Front Matter Page
© 2003 International Monetary Fund
November 2003
IMF Country Report No. 03/347
Georgia: Selected Issues and Statistical Appendix
This Selected Issues paper and Statistical Appendix for Georgia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on September 17, 2003. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Georgia or the Executive Board of the IMF.
The policy of publication of staff reports and other documents by the IMF allows for the deletion of market-sensitive information.
To assist the IMF in evaluating the publication policy, reader comments are invited and may be sent by e-mail to publicationpolicy@imf.org.
Copies of this report are available to the public from
International Monetary Fund. • Publication Services
700 19th Street, N.W. • Washington, D.C. 20431
Telephone: (202) 623-7430. • Telefax: (202) 623-7201
E-mail: publications@imf.org • Internet: http://www.imf.org
Price: $15.00 a copy
International Monetary Fund
Washington, D.C.
Front Matter Page
INTERNATIONAL MONETARY FUND
GEORGIA
Selected Issues and Statistical Appendix
Prepared by a team comprising Paulo Neuhaus (head), Patricia Brukoff, Jonathan Dunn, Wojciech Maliszewski, and Bert van Selm (all EU2), Lisandro Abrego (PDR), Edward Frydl (MFD), and Alejandro Hajdenberg (FAD)
Approved by the European II Department
September 17, 2003
Contents
III. Banking Sector Reforms and Financial Developments in Georgia
A. Summary and Introduction
B. Structure of the Banking System
C. Banking System Operations and Recent Developments
D. Dollarization of the Banking System
E. Banking System Soundness and Vulnerability
F. Regulatory and Prudential Framework
G. Banking Supervision
H. Non-Bank Financial Institutions
I. Agenda for Financial Development and Reform
Text Tables
III-1. Share of Broad Money (M2) to GDP
III-2. Licensed Banks, June 30, 2003
III-3. Number of Banks per Million People
III-4. Banking Ownership by Type and Number of Institutions, June 30, 2003
III-5. Banking System Balance Sheet, June 30, 2003
III-6. Stress Test for Depreciation Shock
Front Matter Page
© 2003 International Monetary Fund
November 2003
IMF Country Report No. 03/347
Georgia: Selected Issues and Statistical Appendix
This Selected Issues paper and Statistical Appendix for Georgia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on September 17, 2003. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Georgia or the Executive Board of the IMF.
The policy of publication of staff reports and other documents by the IMF allows for the deletion of market-sensitive information.
To assist the IMF in evaluating the publication policy, reader comments are invited and may be sent by e-mail to publicationpolicy@imf.org.
Copies of this report are available to the public from
International Monetary Fund. • Publication Services
700 19th Street, N.W. • Washington, D.C. 20431
Telephone: (202) 623-7430. • Telefax: (202) 623-7201
E-mail: publications@imf.org • Internet: http://www.imf.org
Price: $15.00 a copy
International Monetary Fund
Washington, D.C.
Front Matter Page
INTERNATIONAL MONETARY FUND
GEORGIA
Selected Issues and Statistical Appendix
Prepared by a team comprising Paulo Neuhaus (head), Patricia Brukoff, Jonathan Dunn, Wojciech Maliszewski, and Bert van Selm (all EU2), Lisandro Abrego (PDR), Edward Frydl (MFD), and Alejandro Hajdenberg (FAD)
Approved by the European II Department
September 17, 2003
Contents
IV. Summary of the Tax Structure as of July 31, 2003
Front Matter Page
© 2003 International Monetary Fund
November 2003
IMF Country Report No. 03/347
Georgia: Selected Issues and Statistical Appendix
This Selected Issues paper and Statistical Appendix for Georgia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on September 17, 2003. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Georgia or the Executive Board of the IMF.
The policy of publication of staff reports and other documents by the IMF allows for the deletion of market-sensitive information.
To assist the IMF in evaluating the publication policy, reader comments are invited and may be sent by e-mail to publicationpolicy@imf.org.
Copies of this report are available to the public from
International Monetary Fund. • Publication Services
700 19th Street, N.W. • Washington, D.C. 20431
Telephone: (202) 623-7430. • Telefax: (202) 623-7201
E-mail: publications@imf.org • Internet: http://www.imf.org
Price: $15.00 a copy
International Monetary Fund
Washington, D.C.
Front Matter Page
INTERNATIONAL MONETARY FUND
GEORGIA
Selected Issues and Statistical Appendix
Prepared by a team comprising Paulo Neuhaus (head), Patricia Brukoff, Jonathan Dunn, Wojciech Maliszewski, and Bert van Selm (all EU2), Lisandro Abrego (PDR), Edward Frydl (MFD), and Alejandro Hajdenberg (FAD)
Approved by the European II Department
September 17, 2003
Contents
V. External Debt Sustainability Analysis
A. Introduction and Summary
B. Background on Georgia’s External Public Debt
C. Baseline Medium-Term Scenario
D. Stress Tests
E. Restructuring of Bilateral Debt
F. Summary and Conclusions
Text Box
V-1. Has the Debt Problem Deepened?
Text Tables
V-l. External Debt Indicators Relative to Exports
V-2. External Debt Indicators Relative to Government Revenue
V-3. External Debt Indicators After Naples Terms Rescheduling
Figures
V-l. External Public and Publicly-Guaranteed Debt
V-2. Structure of External Public and Publicly-Guaranteed Debt
Front Matter Page
© 2003 International Monetary Fund
November 2003
IMF Country Report No. 03/347
Georgia: Selected Issues and Statistical Appendix
This Selected Issues paper and Statistical Appendix for Georgia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on September 17, 2003. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Georgia or the Executive Board of the IMF.
The policy of publication of staff reports and other documents by the IMF allows for the deletion of market-sensitive information.
To assist the IMF in evaluating the publication policy, reader comments are invited and may be sent by e-mail to publicationpolicy@imf.org.
Copies of this report are available to the public from
International Monetary Fund. • Publication Services
700 19th Street, N.W. • Washington, D.C. 20431
Telephone: (202) 623-7430. • Telefax: (202) 623-7201
E-mail: publications@imf.org • Internet: http://www.imf.org
Price: $15.00 a copy
International Monetary Fund
Washington, D.C.
Front Matter Page
INTERNATIONAL MONETARY FUND
GEORGIA
Selected Issues and Statistical Appendix
Prepared by a team comprising Paulo Neuhaus (head), Patricia Brukoff, Jonathan Dunn, Wojciech Maliszewski, and Bert van Selm (all EU2), Lisandro Abrego (PDR), Edward Frydl (MFD), and Alejandro Hajdenberg (FAD)
Approved by the European II Department
September 17, 2003
Contents
VI. Fiscal Technical Assistance
Statistical Appendix Tables
A-l. GDP by Origin, 1997-2003
A-2. Production of Selected Industrial Commodities, 1990-2002
A-3. Transportation Indicators, 1997-2002
A-4. Population and Employment, 1997-2002
A-5. Unemployment, 1997-2002
A-6. Average Monthly Wages, 1997-2003
A-7. Prices, 1992-2003
A-8. General Government Operations, 1998-2003
A-9. Personal Income Tax Structure
A-10. Statutory Revenue Sharing Arrangements, 1998-2003
A-11. Tax Arrears, 1998-2003
A-12. Revenue Withheld by Adjara, 1999-2002
A-13. Central Government Expenditure by Functional Classification, 1998-2002
A-14. Monetary Survey, 1997-2003
A-15. Accounts of the National Bank of Georgia, 1997-2003
A-16. Summary Accounts of Commercial Banks, 1997-2003
A-17. Developments in the Commercial Banking System, 1997-2002
A-18. Structure of Commercial Bank Deposits, 1997-2003
A-19. Currency Composition of Commercial Bank Credit, 1997-2003
A-20. Interest Rates, 1997-2003
A-21. Prudential Indicators of Commercial Banks, 1997-2003
A-22. Regulatory Framework for Commercial Banks as of June 1, 2003
A-23. Balance of Payments, 1997-2002
A-24. Geographic Distribution of Trade, by Country, 1998-2002
A-25. Composition of Major Exports, 1997-2002
A-26. Composition of Major Imports, 1997-2002
A-27. External Debt Outstanding, 1994-2002
A-28. External Debt Service Obligations, 1998-2002
A-29. Exchange Rates, 1997-2003