Georgia, Germany ink two financial agreements
By Jamila Babayeva
Georgian Finance Minister Nodar Khaduri and German Ambassador to Georgia Ortwin Hennig signed two agreements on financial cooperation and a protocol on amending the agreement on avoidance of double taxation.
Germany agreed to allocate 124.5 million euros to Georgia of which 115 million are a soft loan, and 9.5 million a grant on the basis of the agreement on financial cooperation, the German embassy in Georgia reported.
The amount will be allocated by the German Credit Bank for Reconstruction and spent on the following projects. The construction of a modern landfill in Kutaisi and closing the old landfill site, the construction of the Jvari new power station in western Georgia which will be a part of the transmission network of the Black Sea, the promotion of the development of the financial system for the villages, the improvement of water and sewerage systems in Adjara's villages and rehabilitation of a coastal area in Adjara.
It is also possible to finance the additional projects in the areas of infrastructure such as water supply, sewerage systems, landfills and energy.
The amendments in the double taxation avoidance agreement mainly concern the data exchange which must be brought into conformity with OECD standards. The cooperation between the tax authorities of the two countries becomes more intense.