Georgia is to receive a $750m (Ј422m) loan from the International Monetary Fund (IMF) as it tries to rebuild its economy after the conflict with Russia.
The IMF has agreed in principle to offer financial help to Georgia amid concerns that its growth will be seriously hampered by the recent war.
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Georgia has requested $2bn in funding from the international community.
Economic impact
The toll on Georgia's economy from the conflict - triggered by tensions and violence in the autonomous region of South Ossetia - is not yet clear but experts believe the impact will be significant.
Georgia, itself says growth in its economy will fall to between 5% and 6% this year, half the rate of expansion seen last year.
"I won't be surprised if the annual growth did come down significantly by the end of the year," said David Owen, senior adviser to the IMF's Middle East and Central Asian division.
The IMF said the loan - which must be approved by its executive committee - was designed to "mitigate" the impact of the conflict on Georgia's productivity.
Before the conflict, the IMF was forecasting growth this year of 9%.
Since Mr Saakashvili came to power, the Georgian economy has been growing strongly as it opened itself up to foreign investment.
The IMF said its loan would "help sustain the confidence of markets and investors by supporting policies that will ensure continued macroeconomic stability and promote the recovery of private sector investment and economic growth."
Recovery phase
The IMF sent a mission to Georgia in the wake of the conflict to assess the level of damage and its reconstruction needs.
World Bank boss Robert Zoellick also recently visited the country and pledged support to push Georgia towards a "speedy recovery".
However, he warned that foreign investors were likely to be cautious about committing money to the country in the foreseeable future because of continuing tensions there.
The immediate focus of international institutions has been to assist the thousands of refugees from the fighting.
In the longer term, the emphasis will be on rebuilding destroyed houses and roads and helping Georgia's vital agriculture sector.
The US, a strong ally of Georgia and the EU, which has also been strongly critical of Russia's move to recognise the independence of South Ossetia, have lead calls for multilateral financial help.
(BBC)
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