EU disburses €100 million in budgetary support to Georgia

Today the EU disbursed €100 million under its macro-financial assistance (MFA) programmes to Georgia, helping its balance of payments and alleviating its budgetary financing needs. MFA is meant to help restore a sustainable external financial situation, as a complement to International Monetary Fund (IMF) financing. Since 2008, the EU has launched four MFA operations in Georgia. This was stated in a statement by the European Union Delegation to Georgia, posted on its website

This support is composed of € 75 million from a new MFA programme announced in April 2020 and aimed at limiting the economic fallout of the coronavirus pandemic.  The other € 25 million come as last disbursement of a previous MFA approved in April 2018. Of the total, € 95 million are provided in the form of loans at favourable rates, while the remaining € 5 million are provided as non-reimbursable grant.

The disbursement of €75 million from the COVID-19 MFA programme follows the EU’s agreement with the Government of Georgia to conduct reforms in the areas of public finance management, governance (notably to increase the independence, accountability and quality of the judicial system), energy sector and labour market policies. If these agreed reforms are achieved by the Government, a further € 75 million could be disbursed under this MFA programme early 2021.   

The second part of the disbursement of €25 million comes from the MFA programme agreed in April 2018, and is composed of €20 million of loans and a grant of €5 million. The policy conditions agreed and fulfilled for this second tranche enabled reforms on public finance management, financial sector, social and labour market policies and business environment.

source: commonspace.eu

Related articles

Editor's choice
News
Borrell tells the European Parliament that the situation in Afghanistan was critical, but the EU will remain engaged

Borrell tells the European Parliament that the situation in Afghanistan was critical, but the EU will remain engaged

Borrell underlined that the European Union will make every effort to support the peace process and to remain a committed partner to the Afghan people. "Of course, we will have to take into account the evolving situation, but disengagement is not an option.  We are clear on that: there is no alternative to a negotiated political settlement, through inclusive peace talks.
Editor's choice
News
Libya government reaches preliminary accord with powerful armed group

Libya government reaches preliminary accord with powerful armed group

Libya’s UN-recognized government based in Tripoli has reached a preliminary accord with a powerful armed group to end months of tensions that have flared into occasional violence, a government adviser and local media said on Saturday 13 September. Negotiations between the government and the Radaa Force were facilitated by Turkiye, according to the same sources quoted by Arab News. Ziyad Deghem, an adviser to the head of the Presidential Council transitional body, said the details of the accord “will be announced to the public at a later date.” Libyan broadcaster Al-Ahrar on Saturday posted on X a video that it said showed defense ministry forces entering an airport controlled by Radaa.

Popular

Editor's choice
News
Libya government reaches preliminary accord with powerful armed group

Libya government reaches preliminary accord with powerful armed group

Libya’s UN-recognized government based in Tripoli has reached a preliminary accord with a powerful armed group to end months of tensions that have flared into occasional violence, a government adviser and local media said on Saturday 13 September. Negotiations between the government and the Radaa Force were facilitated by Turkiye, according to the same sources quoted by Arab News. Ziyad Deghem, an adviser to the head of the Presidential Council transitional body, said the details of the accord “will be announced to the public at a later date.” Libyan broadcaster Al-Ahrar on Saturday posted on X a video that it said showed defense ministry forces entering an airport controlled by Radaa.