NEWS

April 12th, 2018. The council adopted a decision on the amount of 45 million euros for macro-financial assistance to Georgia. The aid will serve Georgia's financial needs, through support of economic stabilization and the program of structural reforms.

Georgia's economy is considered vulnerable due to a current accont deficit and high external debts, which the insufficient foreign exchange reserves are added.

Macro-financial assistance is a form of financial help granted by the US to partner countries with balance of payments difficulties. Only countries that benefit from IMF assistent can use it. It is the third operation for Georgia since the country's military conflict with Russia in August 2008.

The frist two operations of macro-economic aid of the EU, amounting to 46 million euros each, were promised in an international donor conference in October 2008. The EU also provides assistence in the framework of its neighborhood policy. 

Geogia added the Oriental Asociation of the EU in 2009. On July 1st, 2016 an association agreement between the EU and Georgia came into force, which provides the gradual introduction of free trade provisions.

The decision about macro-financial assistence was adopted at a session of the General Affairs Council without a debate, and was approved by the European Parliame on March 14th, 2018. 

Disbursements are subject to respect by Georgia, democratic mechanisms and the rule of law, and the guarantee of respect for human rights. The Commission and the European External Action Service are responsible for monitoring compliance with these conditions.

Disbursements will also be subject to financial and economic policy conditions. These will focus on structural reforms and sound public finances and will be accompanied by a timetable for compliance. They will also be included in a memorandum of understanding between Georgia and the Commission. The Commission will be responsible for supervising its application.