BAKU, Azerbaijan, Jan. 4
By Tamilla Mammadova – Trend:
New regulations will be introduced for commercial banks, micro financial organizations (MFOs) and other lending organizations in Georgia starting from February 1, 2020, Trend reports referring to National Bank of Georgia (NBG).
The regulations aimed at preventing growing cases of the loss of real estate pledged as collateral.were adopted by the National Bank on October 11, 2019.
One of the regulations is a norm restricting chances to pledge real estate as collateral to secure a loan will be introduced.
Starting from February 1, 2020, lending organizations will be prohibited from issuing loans secured by real estate, while commercial banks will be prohibited from issuing mortgage loans to MFI (micro financial institution), online lending and other financial organizations.
The regulation was planned to enter into force in 2019, but the National Bank decided to postpone this measure to 2020.
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