BAKU, Azerbaijan, April 15
By Tamilla Mammadova – Trend:
The issuance of loans for citizens has been simplified in Georgia from April 15, Trend reports citing Georgian media.
As reported, banks will be able to establish verification rules themselves, and not be guided by a single standard.
In addition, the National Bank of Georgia reduced the number of categories from four to three to determine the size and rate of loans, depending on the income of the recipient. In particular, loan recipients with income from 1,000 lari ($316.96) to 2,000 lari ($633.91) and loan recipients with income from 2,000 ($633.91) to 4,000 lari ($1,267) were combined into one group.
The National Bank also increased the term of mortgage loans from 15 to 20 years and eased the requirements for the collateral ratio when purchasing an apartment from 60 percent to 70 percent.
Meanwhile, the terms on other loans remained unchanged. Thus, a consumer loan secured by property is not issued for a period of more than 10 years, a car loan - for a period of more than six years, and loans of another type - for a period of more than four years.
In addition, against the backdrop of the coronavirus pandemic, on the initiative of the Georgian government, loan payments for all individuals were suspended for three months until June in Georgia.
In December 2019, the annual growth of loans amounted to 15.9 percent, excluding the effect of the exchange rate, which is mainly due to the growth of loans to legal entities.
At the same time, the National Bank believes that an increase in the threat of coronavirus can slow down lending, as a result of which the volume of loans to GDP will approach a long-term trend.
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