Georgia’s Ministry of Finance has signed an agreement with the International Bank for Reconstruction and Development (IBRD) for a $35 million loan aimed at supporting the country’s Bank Resolution Preparedness Project.

According to the ministry, the project, approved by the World Bank, includes the creation of a pre-arranged $35 million credit line for the resolution fund of the National Bank of Georgia, The Caspian Post reports, citing Sputnik Georgia.

The ministry said the World Bank’s participation and the measures planned within the project will help further strengthen the mechanism of the National Bank’s resolution fund, improve its effectiveness, and align it more closely with international best practices.

The credit line will provide an additional financial safeguard for the resolution fund while the fund is being gradually built up to its target level.

The resolution fund is a dedicated financial reserve supported by regular contributions from banks and other credit institutions.

Its purpose is to ensure the orderly resolution of troubled banks, protect financial stability, and reduce reliance on taxpayer-funded bailouts.