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    Georgia Expects $87Mln in US, EU Aid to Boost Defense, Carry Out Reforms

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    The European Commission will allocate over $57.2 million to Georgia as macro-financial assistance, while the US promised $30 million in military funds as part of US Foreign Military Financing program.

    TBILISI, December 12 (Sputnik) — The Georgian Foreign Ministry announced Friday it expected to get a total of $87 million in aid from the United States and the European Union to boost its military capabilities and tighten trade competition rules ahead of the entry to EU free trade zone.

    "The European Commission will allocate 46 million euro [over $57.2 million] to Georgia as macro-financial assistance," the ministry said citing EU's memorandum of understanding signed by Economic Commissioner Pierre Moscovici.

    The stated goal of the loan, to be disbursed in two equal tranches throughout 2015, is to "ease" Georgia's "financial constraints while supporting the government's economic reform agenda".

    Under the terms of the loan, Georgia is expected to tighten its trade and competition policy to prepare for a possible accession to EU's free trade zone and paving the way for a flow of duty-free goods to the country's market. An agreement to this effect was signed in June between Tbilisi and Brussels.

    Georgia was also promised $30 million in military funds from the United States as part of US Foreign Military Financing program, the Georgian Foreign Ministry said.

    "Thirty million dollars will be disbursed to Georgia under the Foreign Military Financing (FMF) program," the ministry announced in a Friday statement.

    It added the funds were earmarked for Georgia under the so-called Appropriations Bills for Fiscal Year 2015. The bills, which appropriate money to specific US programs, are yet to clear US Congress before they are signed by the US president.

    The United States is also planning to spend a total of $810 million on various programs in Eastern Europe allegedly to strengthen defenses in Ukraine and Moldova, among others, according to the Georgian Foreign Ministry.


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    European Union, financial aid, European Commission, United States, Georgia
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