To support small and medium-sized businesses and improve access to finance, the Law on Microfinance Organizations has been amended. Under the new amendments, the maximum limit for microcredits issued by microfinance organizations has been raised from 100,000 to 200,000 GEL.
Under the amendments, the National Bank of Georgia is authorized to establish additional requirements on microcredit for microfinance organizations through a normative act. It will also ensure the protection of the microfinance sector from excessive risks, which will serve as a foundation for their safe and sustainable operation.
Microfinance organizations will now have the opportunity to offer new products and services to their customers. Small and medium-sized businesses, in turn, will be able to attract larger amounts of financial resources and expand their activities—contributing to economic growth and the creation of new jobs.
The Parliament of Georgia has already approved the amendments to the Law on Microfinance Organizations in the third reading.
The draft law was prepared by the Ministry of Economy and Sustainable Development and the National Bank of Georgia, and initiated by the Government of Georgia.
