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RPT-UPDATE 1-IMF backs Georgia loan as growth to slow-minister
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TBILISI, Sept 3 (Reuters) - The International Monetary Fund has approved a $750 million stand-by loan for Georgia following its brief war with Russia, which is likely to have hit economic growth, Georgian Economic Development Minister Eka Sharashidze said on Wednesday.
An IMF mission to the south Caucasus country was due to issue a report later on Wednesday.
Georgia has requested $1-2 billion in international aid to repair and develop infrastructure in the wake of the conflict in August, according to the U.S. government aid agency, USAID.
Russian tanks, troops and aircraft crushed a Georgian offensive to retake its South Ossetia region from pro-Moscow separatists. Russian bombing raids hit mainly military targets, but Georgia also reported considerable damage to civilian infrastructure.
"The IMF is going to give Georgia $750 million in stand-by loan," Sharashidze told reporters.
She said Georgia had reined in its economic growth forecast for 2008 in light of the conflict.
"Because of the war, we expect economic growth to slow to 5-6 percent from our previous estimate of double-digit growth," Sharashidze told reporters.
Real GDP growth in Georgia in 2007 was 12.4 percent. In March of this year, the IMF predicted 9 percent growth in 2008. (Reporting by Niko Mchedlishvili; writing by Matt Robinson; editing by Jon Boyle and Victoria Main)
