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
Situation in South Yemen strains relations between Saudi Arabia and UAE

Situation in South Yemen strains relations between Saudi Arabia and UAE

The relations between Saudi Arabia and the United Arab Emirates (UAE) are increasingly strained as a result of the different approach of the two countries towards Yemen. Whilst both countries were initially together in resisting the Houthi take over in Yemen, the UAE subsequently focused on the South of the country, backing the Southern Movement (STC), which seeks to restore the independence of South Yemen. South Yemen became an independent country in 1967, at the end of British rule, and only unified with the north in 1990. The Saudi-led “Coalition to Support Legitimacy in Yemen” on Tuesday, 30 December, said it conducted a “limited” airstrike targeting two ships “that smuggled weapons and other military hardware into Mukalla in southern Yemen”. The ships originated in the UAE port of Furjeirah. In a statement carried by the Saudi Press Agency (SPA), the Coalition Forces spokesman, Major General Turki Al-Maliki, said that two ships coming from the port of Fujairah in the United Arab Emirates entered the Port of Mukalla in Hadramaut without obtaining official permits from the Joint Forces Command of the Coalition. He stressed the Coalition's "continued commitment to de-escalation and enforcing calm in the governorates of Hadramawt and Al-Mahra, and to prevent any military support from any country to any Yemeni faction without coordination with the legitimate Yemeni government and the Coalition. The Southern Transitional Council (STC), launched a sweeping military campaign early in December, seizing the governorates of Hadramaut along the Saudi border and the eastern governorate of Al-Mahra in Yemen’s border with Oman. The UAE-backed STC forces captured the city of Seiyun, including its international airport and the presidential palace. They also took control of the strategic PetroMasila oilfields, which account for a massive portion of Yemen’s remaining oil wealth. (click the image to read the article in full).

Popular

Editor's choice
News
Situation in South Yemen strains relations between Saudi Arabia and UAE

Situation in South Yemen strains relations between Saudi Arabia and UAE

The relations between Saudi Arabia and the United Arab Emirates (UAE) are increasingly strained as a result of the different approach of the two countries towards Yemen. Whilst both countries were initially together in resisting the Houthi take over in Yemen, the UAE subsequently focused on the South of the country, backing the Southern Movement (STC), which seeks to restore the independence of South Yemen. South Yemen became an independent country in 1967, at the end of British rule, and only unified with the north in 1990. The Saudi-led “Coalition to Support Legitimacy in Yemen” on Tuesday, 30 December, said it conducted a “limited” airstrike targeting two ships “that smuggled weapons and other military hardware into Mukalla in southern Yemen”. The ships originated in the UAE port of Furjeirah. In a statement carried by the Saudi Press Agency (SPA), the Coalition Forces spokesman, Major General Turki Al-Maliki, said that two ships coming from the port of Fujairah in the United Arab Emirates entered the Port of Mukalla in Hadramaut without obtaining official permits from the Joint Forces Command of the Coalition. He stressed the Coalition's "continued commitment to de-escalation and enforcing calm in the governorates of Hadramawt and Al-Mahra, and to prevent any military support from any country to any Yemeni faction without coordination with the legitimate Yemeni government and the Coalition. The Southern Transitional Council (STC), launched a sweeping military campaign early in December, seizing the governorates of Hadramaut along the Saudi border and the eastern governorate of Al-Mahra in Yemen’s border with Oman. The UAE-backed STC forces captured the city of Seiyun, including its international airport and the presidential palace. They also took control of the strategic PetroMasila oilfields, which account for a massive portion of Yemen’s remaining oil wealth. (click the image to read the article in full).