European Council approves €45 million in financial assistance for Georgia
13 April, 2018
European Council approves €45 million in financial assistance for Georgia
On 12 April 2018, the European Council adopted a decision providing up to €45 million in macro-financial assistance to Georgia, - says the website of the Council of the European Union.

The assistance will help cover Georgia's financing needs, supporting economic stabilization and its agenda for structural reforms.

“Georgia's economy is considered to be vulnerable due to a large current account deficit and high external debt, whilst its foreign reserves have become inadequate,” reads the website.
geotv.ge
European Council adopted a
decision providing up to €45 million in macro-financial assistance to Georgia


Macro-financial assistance is a form or financial aid extended by the EU uses to partner countries with balance of payments difficulties. It is only available to countries benefiting from support from the IMF (International Monetary Fund).

This is the third operation for Georgia since the country's military conflict with Russia in August 2008.
geotv.ge
This is the third operation for Georgia since the country's military conflict with Russia in August 2008

The EU's first two macro-financial assistance operations, amounting to €46 million each, were pledged at an international donors' conference in October 2008. The EU also provides assistance under its neighborhood policy.

The decision on macro-financial assistance was adopted without discussion at a meeting of the General Affairs Council. It was approved by the European Parliament on 14 March 2018.
geotv.ge
The decision on macro-financial assistance was adopted at a meeting of the General Affairs Council

“Disbursements will be conditional on Georgia respecting democratic mechanisms and the rule of law, and guaranteeing respect for human rights. Fulfillment of these conditions is monitored by the Commission and the European External Action Service,” says the statement released by Council of the European Union.

Disbursements will also be subject to economic policy and financial conditions. These will focus on structural reforms and sound public finances, and will include a timetable for their fulfillment. They will be laid down in a memorandum of understanding between Georgia and the Commission. Implementation will be monitored by the Commission.
geotv.ge
Disbursements will also be subject to economic policy and financial conditions

Relations between the European Union (the 'Union') and Georgia continue to develop within the framework of the European Neighborhood Policy (ENP) and the Eastern Partnership.

Georgia joined the EU's Eastern Partnership in 2009, which was followed by the negotiation of an EU-Georgia association agreement. That agreement (the 'Association Agreement'), which includes the gradual introduction of a Deep and Comprehensive Free Trade Area (DCFTA), was signed in June 2014 and entered into force on 1 July 2016.
geotv.ge
Georgia joined the EU's Eastern Partnership in 2009

Since the military conflict with Russia in August 2008, Georgia has benefitted from two macro-financial assistance operations pledged by the Union at the International Donors' Conference in Brussels in October 2008.

The first of those operations, which was of an amount of EUR 46 million made entirely in the form of grants, was implemented in 2009-2010. The second, which was again for an amount of EUR 46 million, made half in grants and half in loans, was implemented in 2015-2017.
geotv.ge
The Union has made EUR 610-746 million available to Georgia under the European Neighborhood Instrument

The Union has also made EUR 610-746 million available to Georgia under the European Neighborhood Instrument for the period 2014-2020, including budgetary support and technical assistance. In addition, Georgia benefits from the Neighborhood Investment Facility which contributed approximately EUR 86 million to projects in Georgia during the period of 2008-2017.

“Given that Georgia is a country covered by the ENP (European Neighborhood Policy), it should be considered to be eligible to receive macro-financial assistance from the Union.
geotv.ge
Georgia is a country covered by the ENP

The Union's macro-financial assistance should be an exceptional financial instrument of untied and undesignated balance-of-payments support, which aims at addressing the beneficiary's immediate external financing needs and should underpin the implementation of a policy programme containing strong immediate adjustment and structural reform measures designed to improve the balance-of-payments position in the short term,” says the April 2018 decision on macro-financial assistance to Georgia.
geotv.ge
The Union's macro-financial assistance to Georgia is under the current exceptional circumstances

According to the statement, the Union's macro-financial assistance to Georgia is under the current exceptional circumstances, considered to be an appropriate response to Georgia's request to support its economic stabilization.
geotv.ge
Macro-financial assistance would support the economic stabilization of Georgia

The Union's macro-financial assistance would support the economic stabilization and the structural reform agenda of Georgia, supplementing resources made available under the IMF's financial arrangement.

Related stories:

European Parliament allocates EUR 45 million for Georgia

EU remains the main trading partner of Georgia - Sajjad Karim

EU Officials Full of Praise of Georgian Youth

EU Parliament says Georgia, Ukraine, Moldova could be considered for EU membership
Print
Other Stories
NATO Days officially open in Georgia
President of Georgia Giorgi Margvelashvili has opened NATO Days.
The Bucharest Summit Revisited
John 20:29: “How blessed are those who have not seen and yet believed”.
US mission to OSCE welcomes Georgia’s peace initiative regarding it occupied territories
The United States mission to the OSCE (Organization for Security and Co-operation in Europe) responded to the discussion
 Government to offer benefits and services to people living in Georgia’s breakaway Abkhazia and Tskhinvali regions
The government of Georgia has approved a new peaceful initiative – a Step toward a Better Future,
President of Georgia pardons 64 prisoners regarding the Easter Holiday
President of Georgia Giorgi Margvelashvii has pardoned 64 inmates regarding the Easter Holiday,
Occupation and presence of Russian troops in occupied regions remain main threat to Georgian state
The State Security Service says presence of Russian Federation's armed forces in Georgia’s occupied regions
Minister of Regional Development and Infrastructure resigns
Zurab Alavidze, the Minister of Regional Development and Infrastructure has resigned,
Georgia expels Russian diplomat over poisoning former spy in England
The Ministry of Foreign Affairs of Georgia declares a member of the staff of the Russian Federation Interests Section
Georgian soldier's death in occupied Tskhinvali Region discussed as the main theme at Geneva talks
Representatives of Tskhinvali and Russia had nothing to say about Archil Tatunashvili,
United Kingdom puts Russian invasion of Georgia in the document about “Salisbury Incident”
The United Kingdom has no doubt that Russia is responsible for the poisoning of former Russian spy Sergei Skripal
Georgian soldier Archil Tatunashvili's death in occupied Tskhinvali Region  to be discussed at Geneva talks
The Georgian side will raise issue of Archil Tatunashvili, a Georgian soldier who died in captivity of Tskhinvali, so-called South Ossetia,
More than 250,000 Georgian citizens traveled to EU / Schengen Zone during past year
A total of 250,000 citizens of Georgia traveled visa-free to the EU’s Schengen Zone during one year period of time.
20 countries expel Russian diplomats
20 countries have expelled Russian diplomats in response to the poisoning of a former Russian spy in England.
US spending bill 2018 prohibits to fund governments that recognize independence of Abkhazia and Tskhinvali region
The US House of Representatives has approved a $1.3 trillion dollar spending bill, which condemns the occupation of Georgia's territories by Russia,
US experts say direct dialogue to create threat of de-facto legitimization of Tskhinvali and Sokhumi
A group of experts from the US believe that a direct dialogue will create the threat of de-facto legitimization
Violations of fundamental human rights in Georgia’s occupied regions stressed at UN Human Rights Council session
The Permanent Representative of Georgia to the UN Office and other international organizations in Geneva,
De facto South Ossetia releases two Georgian citizens from illegal imprisonment
The de facto government of Tskhinvali (South Ossetia) has released two Georgian citizens from illegal imprisonment after paying the fine.
Georgian soldier who died in captivity of South Ossetia  transferred to Georgian-controlled territory
The de facto government of Tskhinvali (South Ossetia) has handed over Archil Tatunashvili's body to the Georgian side.
President of Georgia’s occupied Tskhinvali region congratulates Vladimir Putin on winning elections
Anatoly Bibilov, de facto president of Tskhinvali, occupied South-Ossetia, has invited Russian President Vladimir Putin to Tskhinvali.
White House 'not surprised' by Putin re-election
The White House says it is not surprised by the outcome of the Russian presidential election
 Putin receives 94,1% of votes in Georgia’s occupied region of Abkhazia
Vladimer Putin received more than 76% of the vote, official results show.
US Ambassador to Georgia condemns opening of polling stations in Tskhinvali for Russia's elections
Vladimir Putin will lead Russia for another six years, after winning Sunday's presidential election.
MEP Mamikins Assesses the Visa-Liberalization & Russian Relations
Are Georgia’s visa liberalization woes real or are they a product of speculation and political rhetoric?
US Congressman: Russia must pay a price for crimes against the people of Georgia
US Congressman Ted Poe has released a statement
European Parliament allocates EUR 45 million for Georgia
The European Parliament has allocated EUR 45 million for Georgia
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
26.04.2018
27.04.2018
USD
1
USD
2.4787
2.4640
EUR
1
EUR
3.0243
3.0007
GBP
1
GBP
3.4568
3.4383
RUB
100
RUB
4.0102
3.9209
Other Stories
Exactly one year ago, Georgia was granted visa-free travel with the European Union.
Georgia’s ex-president president Mikheil Saakashvili's supporters managed to free detained Mikheil Saakashvili in the center of Kiev.
The US Ambassador to Georgia Ian Kelly congratulates Georgia on Independence Day.
The regulations on the introduction of visa-free travel for citizens of Georgia have been officially signed in Brussels.
The entire Georgia is involved in Secret Santa game, which means that people are sending gifts to each other secretly
The Minister of Foreign Affairs of Georgia is taking part in NATO Ministerial underway in Brussels, Belgium.
A special squad has been mobilized at the 48th polling station in Marneuli, Kvemo Kartli region.
Two politicians in Georgia have come to blows during a live TV debate ahead of the country’s parliamentary elections, Euronews reports.
The Georgian President and his wife are on a state visit to Israel. Giorgi Magvelashvili and the First Lady, together
Koba Subeliani, a member of the National Movement party and the parliamentary minority
GEL Exchange
USD
1
USD
2.4640
EUR
1
EUR
3.0007
GBP
1
GBP
3.4383
RUB
100
RUB
3.9209