BAKU, Azerbaijan, March 10
By Tamilla Mammadova – Trend:
The Financial Stability Committee of the National Bank of Georgia decided to simplify the issuance of loans to individuals, Trend reports referring to the bank.
“The National Bank decided to simplify the regulation of lending to individuals. This means that the administrative burden associated with lending to legal entities will decrease,” the report said.
According to the National Bank, among the benefits will be changing the boundaries of income to determine the coefficient of loan servicing.
As reported, the basic principle of regulation will remain the same and lenders should not impose obligations on a person that would cause financial difficulties.
Currently, loan servicing factors are divided into four groups depending on their (group's) monthly income - up to 1,000 lari ($345.37), from 1,000 lari to 2,000 lari ($690.74), from 2,000 to 4,000 lari ($1,381) and over 4,000 lari ($1,381).
The International Monetary Fund (IMF) notes that the change will have a positive effect on those whose income ranges from 1,000 ($345.37) to 4,000 lari ($1,381).
As reported, the lending process will reduce the administrative burden and make banks more flexible in assessing risks.
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