Economic analysis

Macro-financial assistance

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 would be provided in the form of grants and up to EUR 35 million in loans.

The proposed MFA, which requires adoption by the European Parliament and the Council before it can enter into force and disbursements can be made, would help Georgia cover part of its external financing needs over the coming years. It would accompany the country’s programme with the International Monetary Fund, approved on 12 April 2017. The MFA would thus contribute to reducing the economy’s short-term balance of payments and fiscal vulnerabilities.

The proposed MFA operation is the third one since Georgia’s military conflict with Russia in August 2008. 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.

MFA 2017-2018

MFA 2011-2017

Press releases

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