BAKU, Azerbaijan, June 26
By Tamilla Mammadova – Trend:
The government of Georgia has approved a mortgage assistance mechanism, which can be used by those wishing to purchase an apartment in the country, Trend reports with reference to Georgian media.
According to the rules established by National Bank of Georgia (NBG), mortgage loans can be issued for a period of up to 20 years and the security ratio for acquiring an apartment will be 70 percent.
“The new program applies to almost all citizens of the country over 18 years old including, in particular, to all developers who have a building permit. They can take part in a competition in which those who offer the lowest price to the state will win,” explained the Minister of Economy and Sustainable Development of Georgia Natia Turnava after a government meeting.
According to the approved program of the government, it will subsidize four percent of the mortgage loan for five years. Thus, if the mortgage is given at 12 percent per annum, then during this period, the person who takes the mortgage will pay 8 percent of the amount per year, and the rest will be covered by the state.
Given that the security ratio for acquiring an apartment is 70 percent, the remaining 30 percent must be paid by the recipient buying an apartment. The participant in the program who receives a loan pays only 10 percent, while the state provides guarantees for the remaining 20 percent, according to which the buyer receives a delay in paying this amount.
Under the plan, the government will allocate 70 million lari ($22.9 million) to subsidize the interest rate on the mortgage and 14 million lari ($4.5 million) on state guarantees for a portfolio of mortgage loans.
The program will operate on contracts concluded before the end of the year.
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