Georgia to receive Euro138 Million from EU and Euro150Million from European Commission
By Khatia Bzhalava
Thursday, April 23
The official web page of the EU has published press releases about a telephone conversation between the high representative/Vice President of the European Union, Josep Borell, and Giorgi Gakharia, the Prime Minister of Georgia. The sides discussed the issues of the coronavirus outbreak including the matters of fighting against the epidemic and its socio-economic consequences. During the conversation, a support package of Euro138 Million, which was unveiled on April 8th, was also mentioned.
Borell stressed the EU’s support provided to Georgia to overcome the crisis caused by the Coronavirus. The EU supports six Eastern partnership countries with the financial package, amounting to Euro80 million for immediate needs in the healthcare sector and Euro884 million for short-term needs for socio-economic recovery.
As said in the statement, the EU is a strong supporter of Georgia’s reform processes and sovereignty and territorial unity of Georgia within its internationally recognised border, condemning borderisation along the Administrative Boundary Line of the Georgian breakaway region of South Ossetia.
The EU’s ambassador to Georgia, H.E. Carl Hartzel also replied to the EU’s support package:
“While Europe is in the midst of its own struggle to overcome the harsh consequences of the COVID-19 pandemic, it continues to stand by its partners. I am proud to announce that the European Union will redirect and accelerate over Euro180million of existing funding to give maximum support to Georgia for its COVID-19 response. All this funding comes as non-reimbursable grants, not as loans, and it comes on top of the support package the EU announced last week, bringing total EU support to Georgia to over Euro250 mln.”
Outside the total support of over Euro250 million from the EU, Georgia will also receive the third package in the form of Euro150Million of loan with low-interest from the European Commission.
The press release published by Brussels states that the Commission has adopted a proposal for a Euro3 billion macro-financial assistance (MFA) package to ten enlargement and neighbourhood partners, including Georgia, to help them limit the economic fallout of the Coronavirus pandemic. The initiative represents an important demonstration of the EU's solidarity with these countries at the time of unprecedented crisis.
The MFA funds will be made available for 12 months in the form of loans on highly favourable terms to help 10 neighbouring countries cover their immediate, urgent financing needs.
Hartzel, the EU’s ambassador to Georgia shared his letter to PM Gakharia on Twitter.
“Today I am proud to convey that the European Commission has proposed a third package. Together with IMF support, our funds aim to enhance macroeconomic stability and create space to allow resources to be channeled towards protecting the Georgian citizens and mitigating the pandemic’s negative socio-economic consequences.”
