New regulations to be introduced for financial sector in Georgia
Baku, Azerbaijan, October 17
By Tamilla Mammadova – Trend:
New regulations will be introduced for commercial banks, MFOs (micro financial organization) and other lending organizations in Georgia starting February 1, 2020, Trend reports via the National Bank of Georgia.
These regulations were adopted by the National Bank on October 11.
In particular, the norm restricts chances to pledge real estate as collateral to secure a loan.
The regulation was planned to enter into force on July 1, 2019, but the National Bank decided to postpone it.
Starting February 1, 2020, lending organizations will be prohibited from issuing loans secured by real estate; commercial banks will also be prohibited from issuing mortgage loans to MFI (micro financial institution), online lending and other financial organizations.
The decision was made by the National Bank back on May 20, 2019. The regulations are aimed at preventing growing cases of the loss of real estate pledged as collateral.
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