European Commission proposes €45 mln in financial aide to Georgia

Georgian citizens can now enter the European Union visa-free for 90 days within a 180-day period. Photo by N. Alavidze/Agenda.ge.
Agenda.ge, 30 Sep 2017 - 12:09, Tbilisi,Georgia

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).