A Grant or a Loan? Manipulation by Georgia and the World on EU Aid

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On May 6, an online edition Georgia and the World published an article titled “Is Acknowledging that We Do Not Have Other Alternative Except Russia and we May Die from Hunger a Betrayal of the West?!”. In the article, Beso Barbakadze, a journalist, shares his opinion that Georgia does not have an alternative other than asking Russia for help, while the grants approved by the European Union for fighting the coronavirus are actually loans that the country will have to pay.

The information that the funds allocated by the EU to Georgia for fighting the coronavirus are actually a debt, is a manipulation. In March-April 2020, a total of EUR 400 million were transferred from the EU and some of its member countries to Georgia for fighting the pandemic. Out of these funds, EUR 250 million is a grant that is not subject to return, while EUR 150 million is a preferential loan.

EU and its member countries transferred two grants with a total worth of EUR 250 million to Georgia to fight the COVID-19 and the subsequent economic problems:

  • First grant – March 30. It aimed to fund emergency medical devices and technical experience, support the vulnerable groups, and provide substantive help to small and medium-sized enterprises in maintaining their liquidity.
  • Second grant – April 8. The grant aimed to support the socio-economic measures and fill the country’s financial losses.

On April 21, the European Commission stated that it would allocate a loan worth EUR 150 million to Georgia with very preferential conditions in order to help Georgia meet the immediate financial needs. According to the statement by Carl Hartzell, the Ambassador of the European Union to Georgia, the aid aims to strengthen macroeconomic stability and create an environment that would facilitate directing resources to the protection of the citizens of Georgia and mitigate the negative socio-economic consequences of the pandemic.

In his interview with the Myth Detector, an EU representative explained that establishing truth around this issue is not what Georgia and the World aims to.

As a representative of the EU delegation stated, the major part of the EU aid is a grant, as it has been the case for years. “In the context of COVID-19, aid for Georgia has been allocated from the EU budget, member states, and the financial institutes of the European Union – the name for these European donors became ‘Team Europe’” – stated the EU delegation.

Read more on this topic in an article by Myth Detector: “How Does the West Help Georgia and With What Messages Do Pro-Kremlin Media Supply Us?”.

Violation: Manipulation
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