Georgia - Georgia Bank Resolution Readiness Project : Chair Summary

Overview & Synopsis

The Executive Directors approved an IBRD loan for the Georgia Bank Resolution Readiness Project to operationalize the Resolution Fund during its capitalization period, using Investment Project Financing with a Deferred Drawdown Option (IPF DDO) under the Crisis Response Toolkit and building on legal, regulatory, and institutional reforms supported by the International Monetary Fund (IMF) and the World Bank to strengthen the bank resolution framework before stress. The operation supports continuity of critical banking functions including deposits, payments, and viable credit for households, small and medium enterprises (SMEs), and essential service providers, while addressing technical design and political governance risks through measures such as an eligible resolution trigger event, a verification protocol, disbursement drills, interagency coordination, and simulation exercises, with Directors encouraging continued World Bank technical engagement and coordination with partners.