BAKU, Azerbaijan, November 21
By Tamilla Mammadova – Trend:
Georgian business associations believe that the latest banking rules of the National Bank of Georgia should be reviewed, Trend reports via Georgian media outlets.
The Georgian authorities since January 1 of this year have taken a number of measures to tighten the rules for issuing loans. In particular, banks and financial organizations can give credit only after a detailed analysis of the financial situation of those who want to get a loan and are guided only by net income. In addition, a limit has been set on the amount of monthly loan payments, loan terms, and it is forbidden to issue amounts of up to 200,000 lari in dollars.
"From a business perspective, some of the steps taken in banking regulation were inadequate. Accordingly, given the risks in the market at the time, some requirements for banking regulation were excessive," the Georgian Business Associations statement said.
According to the new lending rules, the maximum loan terms are set. A mortgage loan is not issued for more than 15 years, a consumer loan secured by property for a period of more than 10 years, a car loan for a period of more than 6 years, and loans of a different type for a period of more than 4 years.
"We believe that fundamental macroeconomic factors in no way affect the dynamics of the exchange rate that has been taking place recently in the domestic foreign exchange market. All macroeconomic parameters, including fiscal discipline, are reliable," the Business Association said in a statement.
For six months, the lari depreciated by 10 percent against the dollar. If on April 1 the official rate of the lari to the dollar announced by the National Bank was 2.7029 GEL / $ 1, then by October 1 it already reached 2.9770 GEL / $ 1. As a result, annual inflation in October amounted to 6.9 percent.
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