Brussels, 12/12/2014 (Agence Europe) - On Friday 12 December, the European Commission signed a Memorandum of Understanding on macro-financial assistance for Georgia to the tune of €46 million.
The aid was decided upon in August 2013 in order to stabilise the country's balance of payments and will be distributed evenly between grants and loans and will be disbursed in two equal tranches in 2015.
Disbursement of the assistance will be conditional on a number of economic policy measures outlined in the Memorandum of Understanding and on the successful implementation of an IMF Stand-By Arrangement, approved by the IMF Executive Board on 30 July 2014. The policy measures focus on public finance management, strengthening the social safety net, reinforcing banking regulation and trade and competition policy measures to support the implementation of a trade deal signed with the EU (see EUROPE 10893).
“The EU is helping Georgia ease its financing constraints while supporting the government's economic reform agenda,” explained Economic Affairs Commissioner Pierre Moscovici. (MB)