Chancellor meets with Georgian Prime Minister

The Chancellor of the Exchequer, Alistair Darling, met the Georgian Prime Minister, Lado Gurgenidze, this morning to discuss steps towards ensuring the success and stability of the Georgian economy as it emerges from the current crisis. The UK Government fully supports the Georgian Government's efforts to reassure and attract investors to Georgia.

Commenting on the visit Alistair Darling said:

"The UK has lent its full support to the multilateral effort to assist Georgia at this time of crisis. It is important to restore confidence in Georgia's economy and press ahead with reforms that will ensure it can continue to grow strongly. The UK has pledged additional assistance to Georgia on issues such as taxation, financial services and monetary policy".

The Georgian Prime Minister extended the discussions at a City investors' conference this morning and will later meet with European Bank for Reconstruction and Development (EBRD).

A cross Whitehall Working Party this afternoon will also take forward measures to assist Georgia. The UK will:

begin discussions with Georgia on the double taxation agreement between the two countries, with a view to further consultation agreeing a potential amending protocol that further facilitates UK investment in Georgia; and
help build capacity within the Georgia's financial services regulator and central bank. The UK Financial Services Authority and the Bank of England, through its centre for central banking studies, will offer technical assistance in priority areas

Notes for Editors

1. The UK Government has given strong support to the efforts of international organisations to develop packages of assistance. The Government fully supports the IMF decision to offer Georgia a $750 million stand-by agreement, and also welcomes the European Commission's intention to provide significant support to Georgia and look forward to addressing the details of this when the World Bank's needs assessment is available next week.

2. This afternoon a cross-Whitehall Working Party, consisting of members from Treasury, FSA, The Bank of England, HMRC, DFID and BERR, will meet the Georgian Prime Minister to focus on the next stage of the UK's support for Georgia, looking at how the UK can give practical technical assistance to Georgia's economic institutions. Talks on trade and development will also be discussed.

3. Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to public.enquiries@hm-treasury.gov.uk.

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