European Union approves $61 million aid package to Georgia

[News_Editor]

European Union approves $61 million aid package to Georgia

2011-05-10 22:57:19 GMT+7 (ICT)

BRUSSELS (BNO NEWS) -- The European Union on Tuesday announced a €46 million ($61 million) macro-financial assistance (MFA) package to support its economic recovery.

The financial aid package was approved by the European Parliament on Tuesday after it was proposed in January by the European Commission. This was the second MFA granted to Georgia due to a previous commitment by the EU.

However, the details of how the implementation of the assistance package will be overseen are still being discussed. Thus, the Parliament will hold a second reading of the proposal.

The Parliament proposed that the release of funds should be dealt as in the previous instances of the EU macro-financial assistance under the Lisbon Treaty, adopting the proposal as made by the Commission.

On the other hand, the European Council argued that the oversight of the release of funds should be made through an examination procedure as opposed to the Commission's advisory procedure.

The €46 million ($61 million) aid is part of a comprehensive package from the EU totaling €500 million ($666.85 million) to support Georgia's recovery stemming from the 2008 armed conflict with Russia and the global crisis.

The aid follows a successful implementation during the last two years of a similar financial comprehensive package. The macro-financial help will support the adjustment program from the Georgian government, designed along the International Monetary Fund (IMF).

In 2010, Georgia showed signs of economic recovery after two years of low or negative growth. The real GDP grew by 6.3 percent despite the trade embargo imposed by Russia.

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