Page 32 - GEORptFeb21

EU extends €100mn to Georgia under two MFAs
Budgetary expenditures are set at GEL18.38bn, up by GEL4.06bn compared to 2020. Under the 2020-2021 anti-crisis plan, GEL2.8bn ($850mn) will be allocated to support businesses and GEL200mn ($61mn) to assist citizens.
The European Union has transferred €100mn to support Georgia's balance of payments and help meet its budgetary financial needs under macro-financial assistance (MFA) operations.
One operation aims to restore Georgia’s stable external financial position and is co-financed by the International Monetary Fund (IMF). Since 2008, the EU has conducted four MFA operations in Georgia.
The components of this assistance include €75mn from a new MFA operation announced in April aimed at mitigating the socio-economic consequences of the coronavirus (COVID-19) pandemic and €25mn as the last tranche from a previous MFA operation approved in April 2018.
Of the €100mn disbursed, €95mn is in the form of soft loans and the remaining €5mn is a grant.
The €75bn tranche will form parts of an MFA dealing with the pandemic and a reform agreement with the Georgian government.
Reforms are to be implemented in the areas of public finance management, governance (especially to improve the independence, accountability and quality of the judiciary), the energy sector and labour market policies. If the government implements these agreed reforms, an additional €75mn will be disbursed as MFA in early 2021.
The second tranche of the MFA operation approved in April 2018 (€25mn ) consists of loans (€20mn) and grants (€5mn). The implementation of the specific agreed policy conditions for this second tranche make it possible to carry out reforms in the areas of public financial management, the financial sector, social and labour market policy and the business environment.
"The European Union continues to support Georgia in its fight against the COVID-19 pandemic. We also believe that the agreed reforms related to this special assistance will contribute to the long-term perspective of Georgia's further approximation to European standards and will be of particular benefit to Georgian citizens in areas such as justice, occupational safety and pensions,” noted the EU Ambassador to Tbilisi Carl Hartzel.
6.2 ​Debt
Georgia - Gross external debt
4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
Gross external debt ($ mn)
17,319 17,809 17,461 17,299 17,812 17,822 18,232 17,902 18,631 18,282
2011 2012 2013 2014 2015 2016 2017 2018 2019
Gross external debt (% GDP)
81.2 84.6 83.2 84.7 109.4 110.7 106.4 101.3 105.4
source: CEIC, World Bank
32​ GEORGIA Country Report​ February 2021 ​ ​www.intellinews.com