Georgia plans to redirect loans from European Investment Bank

Business Materials 16 February 2021 16:57 (UTC +04:00)
Georgia plans to redirect loans from European Investment Bank

BAKU, Azerbaijan, Feb.16

By Tamilla Mammadova – Trend:

The Government of Georgia plans to re-program the agreement signed by Georgia and European Investment Bank (EIB) on December 9, 2016, Trend reports via Georgian media.

Under the agreement, the loan of 100 million euros was to finance infrastructural projects in Georgia, but this resource will be redirected to COVID-elimination activities. Namely, this sum will be spent on improving healthcare infrastructure, carrying out counter-pandemic measures, and vaccination programs.

The issue was discussed at the parliament’s finance and budget committee.

“The agreement signed in December 2016 was preceded by the agreement signed in February 2016 on the allocation of 100 million euros. The earlier agreement was signed after the Tbilisi natural disaster for restoring the damaged infrastructure. The country could employ the new allocation after having spent the earlier allocation. Georgia has already spent 75 million euros from 100 million euros allocated in February 2016, while the remaining 25 million euros will be spent on several other projects. When communicating with EIB on the allocation of the new tranche, we agreed to re-program the 100 million euros, and the new agreement will be signed if we need money for municipal infrastructural projects”, Deputy Finance Minister Giorgi Kakauridze said.

Deputy Health Minister Tamar Gabunia has also commented on the issue and noted that similar resources should be mobilized to fully fund the vaccination program.

“Based on analysis of the 2020 needs, the country will need around 420 million euros for COVID programs. Therefore, we should mobilize similar resources to provide a valuable vaccination process," Gabunia said.

As she noted, state clinics will be equipped and this process has already started in 2021. The new AIDS center building will be equipped, as well as Republican Hospital and Universal Health Center, regional healthcare hospitals.


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