New world crisis to affect Georgian banking sector

Business Materials 10 August 2011 12:49 (UTC +04:00)

Georgia, Tbilisi, Aug. 10 / Trend N. Kirtskhalia /

Global exchange processes are following the decline in the U.S credit rating.

The global exchanges will affect Georgia and its banks, which are most integrated into the global system from among other sectors of the economy, Executive Director of the Institute of Economic Policy Giorgi Abashishvili told "Kommersant" radio.

Abashishvili especially predicts a reduction of credit resources creating a problem for Georgian banks.

"Most credits fall on the consumer segment", Abashishvili said. "Mainly it will be affected, perhaps complicating the process of obtaining credit."

"I think that U.S. and European problems will be put localized", Abashishvili said.

An economic expert, Irakli Lekvinadze gives a more optimistic forecast. "I think that the fall in the U.S credit rating will bear much impact on Georgia", Lekvinadze said. "The most obvious difference in the Georgian market will be the weakening of the dollar, which will continue to decrease after the credit ratings drop."