EU to lend 46 million euros in budget aid to Georgia

The European Union should lend Georgia 46 million euros over the next two years to help keep its government solvent, the bloc’s executive said Thursday.

The EU first granted financial support in 2009. 

‘The European Commission proposes to provide macro-financial assistance to Georgia of up to 46 million euros, with half of the assistance to be disbursed in the form of grants and half in the form of loans,’ a statement issued in Brussels read.

Member states and the European Parliament would have to approve the proposal next.

The funding ‘will contribute to cover Georgia’s external financing needs in 2011,’ as long as Georgia lives up to reform agreements with the EU and International Monetary Fund (IMF).