TBC Bank will start issuing new government-subsidized mortgage loans from mid-June, Vakhtang Butskhrikidze, CEO at TBC Bank, says.
According to Butskhrikidze, a number of technical procedures are to be carried out that will take 1-2 weeks.
“The work on the program has been carried out in the past 3 weeks, the government officials as well as the development sector representatives and bankers were actively involved in it . Under the new lending conditions, the lari-denominated mortgage loans will be able to compete with the dollar-denominated ones that will boost the larization level of the country’s financial systems, "he notes.
Butskhrikidze notes that initially it was planned to expand the program at the expense of the secondary market, but still it was decided that only the loans to purchase new apartments will be subsidized.
“This initiative will contribute to the development of the real estate sector,” TBC Bank CEO says .
Butskhrikidze believes that mortgage subsidizing by 4% this year will attract about GEL 500 million to the real estate market, while after subsidizing the final interest rate will amount to an average of 7%.