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.
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.
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.
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.
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.
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.
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.
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.
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.
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
Other Stories
Adam Kinzinger: I Strongly Support Georgia's Immediate NATO Membership
Congressman Adam Kinzinger, Chairman of the Georgian Caucus of Congress, is one of the main authors of critical letters received by the Georgian government in recent months.
Matthew Bryza: "I think it’s a shame if Georgia doesn’t participate in this digital hub project"
Matthew Bryza worries new telecommunications law targets Caucasus Online and will block major investments that could make Georgia the strategic center of a “digital silk road”
Czech Ambassador: “Georgia among the best countries worldwide when it comes to combating Covid 19”
"Czech contribution in monitoring COVID-19 in Georgia was invaluable and hugely important” - Georgia’s Health Minister Ekaterine Tikaradze praised the Czech Republic’s contribution during Friday meeting with the Ambassador of the Czech Republic to Georgia, H.E. Petr Mikyska as the Georgian and Czech sides met to discuss various aspects of joint collaboration.
Russian MFA Statement About Lugar Research Center-Another Disinformation
The Ministry of Foreign Affairs of Georgia responds to the statement of the Russian Foreign Ministry regarding Lugar's laboratory.
UN Human Rights Council Adopts Resolution On Occupied Territories Of Georgia
The UN Human Rights Council adopted a resolution on the occupied territories of Georgia - "Cooperation with Georgia" within the framework of its 43rd session.
Kurt Volker about 20th of June: People Can’t Forget That
Given that one year has passed since June 20, 2019, it is interesting to see how the West assesses the developments in Georgia during this one year and what expectations it has for the October parliamentary elections.
Eastern Partnership Beyond 2020- Context and Expectations
The Eastern Partnership (EaP) marked its 10th anniversary in 2019. The round dates always come with reflections and new resolutions for the future.
"8 March Agreement Is Very important For Georgian Democracy"-Carl Hartzell
The 8th March agreement concerned not only the change in the electoral system but justice and the impermissibility of political partiality in electoral processes, - stated the Ambassador of the European Union to Georgia, Carl Hartzell during his video broadcast.
Donald Trump Congratulates Georgia on Independence Day
The President of the United States of America Donald Trump sent a letter of congratulations to the Prime Minister of Georgia Giorgi Gakharia on Independence Day.
US Ambassador Congratulating Georgia on the Independence Day
US Ambassador to Georgia Kelly Degnan has congratulated Georgia on the Independence Day.
Georgia's President Warns Covid-19 Crisis Could Trigger Russian Aggression
Georgia’s president has warned that Russia’s struggle to contain the spread of coronavirus and an economic crisis compounded by an oil price collapse risk is triggering new Kremlin aggression beyond its borders, - reads an article published by Financial Times.
Creation of Maps Violating Georgia's Territorial Integrity To be Considered Illegal
Production, advertising, use, and transportation of maps and other objects reflecting the violation of the principle of territorial integrity of Georgia will be considered as an illegal act.
Turkey Starts Accepting Health Tourists From Georgia
Turkey has started accepting foreign patients from several countries, including from Georgia.
Georgia Has The Greatest Support In the World From EU-Carl Hartzell
A true friend is known to be in trouble, and we have proved that we are true friends, ”-EU Ambassador to Georgia Carl Hartzel said during an online meeting with members of the European Business Association.
The EU Council Has Approved a Package of Financial Assistance to Georgia
The Council of the European Union (EU) has approved a package of emergency macro-financial assistance for 10 countries as part of its Neighborhood and Enlargement Policy.
The US Ambassador Stresses The Importance of Fair Judiciary System
We would like to see more American companies invest in Georgia and more Georgian companies in the United States said US Ambassador Kelly Degnan during a virtual press conference.
"One More Political Prisoner Is Still Waiting To Be Released"-McAllister
The MEPs expressed their opinions about the political situation in Georgia at the discussion of the report on the implementation of the Association Agreement between the EU and Georgia.
Promoting Georgia As a Safe Destination For Tourism
“Georgia – a safe destination” is a message that Georgian diplomats should send to people in their countries, - Georgian Prime Minister Giorgi Gakharia said while talking to Georgian ambassadors abroad via a video conference today.
UN To Allocate USD 1 Million To Support COVID-19 Crisis in Georgia
The United Nations will allocate USD 1 million for Georgia to help the country better respond to the immediate health consequences of the COVID-19 pandemic and protect the most vulnerable groups from the devastating socio-economic impacts of the health crisis.
U.S. Senators Express Concern Over The Expulsion of American Businesses From Georgia
U.S. Senators Ted Cruz and John Cornyn, Congressmen Judy Arrington, and Markwayne Mullin have written to Secretary of State Mike Pompeo and Treasury Secretary Steve Mnuchin, expressing concern over the expulsion of U.S. companies and businesses from Georgia.
European Parliament Approves €150 Million Aid For Georgia
The European Parliament on Friday approved €3 billion in loans to help EU neighbors and partner countries deal with the fallout of COVID-19.
MEPs and U.S Senators Welcome the Pardon of Opposition Politicians
Georgian President Salome Zurabishvili announced yesterday that she was pardoning Georgian opposition politicians Gigi Ugulava and Irakli Okruashvili, which she said was ‘a very difficult decision’.
The Presidency of the Council of Europe of Georgia Received a High Assessment
According to the Prime Minister Giorgi Gakharia, the presidency of the Council of Europe of Georgia had a very high assessment at the international level.
Coronavirus Crisis is an Opportunity to Deepen Relations With the EU-Salome Zourabichvili
The President of Georgia Salome Zourabichvili talked to the President of the Republic of Finland Sauli Niinistö on March 14.
GEL Exchange Rate
Other Stories
On 26 May, Jean-Claude Juncker, President of the European Commission, joined celebrations in the Georgian capital of Tbilisi
Violation of Georgia’s sovereignty and territorial integrity by Assad regime has been strictly criticized
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.
GEL Exchange
September 2020
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30