Economic analysis

Macro-financial assistance

MFA in the context of the COVID-19 pandemic

On 22 April 2020, the Commission adopted a proposal for a €3 billion MFA package to ten enlargement and neighbourhood partners to help them limit the economic fallout of the coronavirus pandemic. The decision was adopted by the European Parliament and the Council of the EU on 25 May 2020. As part of this package, the EU agreed on a MFA programme of EUR 150 million to Georgia. The first instalment of EUR 75 million was disbursed in November 2020. The second instalment was cancelled by the Commission following the decision of Georgia to refrain from requesting it, and in view of the non-fulfilment of an important policy condition related to the judicial system.

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MFA-III

On 29 September 2017, the European Commission proposed a new Macro-Financial Assistance (MFA) programme to Georgia of up to EUR 45 million. Of the total amount, up to EUR 10 million will be provided in the form of grants and up to EUR 35 million in loans. The proposed MFA operation is the third one since Georgia’s military conflict with Russia in August 2008.

The proposed MFA was adopted by the European Parliament and the Council on 18 April 2018. The MFA entered into force in November 2018 following the ratification of the legal documents by the Georgian parliament. The first instalment of EUR 20 million was disbursed in December 2018. The second and last tranche of EUR 25 million was disbursed in November 2020.

MFA 2009-2010 and MFA 2015-2017

In October 2008, the EU pledged two MFA operations of EUR 46 million each at the International Donors’ Conference in Brussels. The first of those operations (EUR 46 million, fully in the form of grants) was implemented in 2009-2010 and the second (again EUR 46 million - half in grants and half loans) in 2015-2017. The last tranche of the second operation was disbursed in May 2017.

Press releases

The links below provide additional information on EU-Georgia relations: