Loan  regulations can be softened

Loan regulations can be softened

access_time2019-03-21 10:50:25

“Too little time has passed since  the responsible lending program entered  into force, part of which was the new credit regulations, to draw  any specific conclusions,” Georgia’s Prime Minister Mamuka Bakhtadze says.

According to PM, the program implementation is being studied, after which the government will formulate its  position. In particular, the central bank, the Ministry of Finance and analysts are involved in the study and   their findings will be known in the near future.

“If necessary,  the program will be reviewed,” Mamuka Bakhtadze notes.

 PM says  that the decision was adopted as the  program of responsible lending was necessary.

“The lending  system in Georgia was completely irresponsible and  brought very serious consequences. We introduced new regulations to make lending more fair  and responsible. We used the European experience to protect our citizens, ”the Prime Minister says.

As for the impact of the program on Georgia’s economy, in  the Prime Minister’s words, the regulations have reduced consumer lending that is quite logical.

TBC Research study shows that in February 2019 consumer lending grew by only 0 3% and hit a 6- year low  that means that growth in consumer non-mortgage lending (installments, credit cards, and microcredits) is not observed.


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