Georgia postpones introduction of credit regulations of pawnshops
Baku, Azerbaijan, July 2
By Tamilla Mammadova - Trend:
The National Bank of Georgia has postponed entry into force of credit regulations for pawnshops, Trend reports with reference to bizzone.info.These regulations prohibit pawnshops from re-pledging mortgaged property in commercial banks.
The norm should have to come into force since July 1, but the bank made the decision to postpone its implementation till November, as pawnshops need additional time to prepare for the new and rather difficult rules. So, the regulator decided to give them a few months to adapt to the new conditions.
As reported, representatives of the Lombard business wanted to postpone until January 1, 2020, but the National Bank did not agree and decided that the regulations would take effect from November 1, 2019.
“The main purpose of the changes is to protect the rights of consumers, because the re-pledge of the mortgaged property significantly increases the risk of losing the property and delays the return of the property after the loan is paid,” the National Bank noted.