WASHINGTON, Sept. 3 (Xinhua) -- The International Monetary Fund said on Wednesday it has reached an agreement in principle with Georgia on a 750 million-dollar financial package.

    The proposed arrangement requires the approval of the IMF Executive Board, which is expected to consider Georgia's request in mid-September, according to a statement released by the IMF.

    The loan would be provided through an 18-month Stand-By Arrangement. The arrangement is intended to support the economic policies of the Georgian authorities and to help mitigate the adverse economic and financial consequences of the recent conflict, said David Owen, head of the IMF mission team that visited Georgia to discuss the financing.

    "Georgia has followed sound macroeconomic and financial sector policies, notably in the context of the IMF-supported program under the Poverty Reduction and Growth Facility that ended in September 2007," said IMF First Deputy Managing Director John Lipsky in a statement last month, voicing concern about the impact of the conflict and tragic loss of life.