European Commission proposes €45 mln in financial aide to Georgia
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The European Commission has proposed up to €45 million in new Macro-Financial Assistance (MFA) to Georgia to help it cover part of its external financing needs.
Welcoming Georgia’s "significant progress with economic reforms” the European Commission said "its macroeconomic outlook remains vulnerable”.
Today's proposal for additional assistance is another sign of the EU's strong support for the Georgian people. As Georgia continues its economic transition, we are helping the country to preserve macroeconomic stability and continue the reform process, which is needed to achieve stronger and more inclusive growth”, Pierre Moscovici Commissioner for Economic and Financial Affairs, Taxation and Customs said.
The MFA program was intended to strengthen Georgia's balance of payments and budgetary position and to support reforms aimed at reinforcing economic governance, increasing social inclusiveness and promoting closer economic integration with the EU.
Of the total €45 million, €10 million will be provided in the form of grants and up to €35 million in medium-term loans at favourable financing conditions, helping to reduce uncertainties surrounding the economy's short-term balance of payments and fiscal issues”, the Commission said.
If adopted by the European Parliament and the Council, the Commission believes this assistance will help address some of the weaknesses of the Georgian economy, complement the reforms agreed in the context of the EU's budgetary and other support operations, and the EU-Georgia Association Agreement which envisages the creation of a Deep and Comprehensive Free Trade Area (DCFTA).
Today Georgia’s Prime Minister Giorgi Kvirikashvili invited European Commission President Jean-Claude Juncker to Georgia so he can learn more about the reforms implemented in Georgia.
President of the European Council Donald Tusk voiced the EU’s support for Georgia after he met Georgia’s Prime Minister Giorgi Kvirikashvili in Brussels, Belgium this afternoon. This was the first time the pair met after Kvirikashvili was appointed Prime Minister of Georgia.
European Union (EU) Commissioner for Neighbourhood Policy and Enlargement Negotiations Johannes Hahn believes Georgia has carried out "impressive reforms” to meet its obligations drafted within the EU-Georgia Association Agreement (AA) deal, signed in June 2014.
Georgia can count on continuing support from the European Union (EU), who this week announced it would allocate €46 million to Georgia as macro-financial assistance in 2015.
A high-level strategic dialogue on security issues between Georgia and the EU will launch today. Prime Minister Kvirikashvili assessed this as an "important achievement, which, in fact, makes Georgia an important component of the European security system”.
The Georgian President Giorgi Margvelashvili and the President of the European Commission Jean-Claude Juncker have agreed on establishing yet another high-level format of bilateral cooperation between Georgia and the European Union (EU).
The European Parliament has endorsed a European Commission's proposal to provide further macro-financial assistance worth of €45 million to help Georgia cover part of its external financing needs for the period of 2017-2020. The European Parliament approved the €45 million in macro-financial assistance with 570 votes in favour and 108 against.
The European Union is allocating 11.8 million GEL to fund eight new projects in Georgia in order to support civil society and human rights in the country.
The government of Georgia has initiated the elaboration of the EU integration roadmap, which will ensure European integration at a faster rate.
The European Commission has signed a memorandum of understanding with Georgia for macro-financial assistance (MFA) of up to €45 million to help Georgia cover part of its external financing needs and support economic reforms.