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Significance

EU officials said this was another setback to reforms, after Georgian Dream withdrew from an electoral agreement that had ended months of confrontation with the opposition. Now the government has pre-emptively turned down a loan tranche before the EU can block it.

Impacts

The protracted domestic political crisis will hamper inflows of foreign investment.

One solution will be to solicit Chinese investments despite US concerns.

The pandemic will continue to limit the scope of economic recovery.

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