BAKU, Azerbaijan, Dec.10
By Tamilla Mammadova – Trend:
The actions of National Bank of Georgia (NBG) both before the COVID-19 outbreak and during it were rational, said President of the NBG Koba Gvenetadze, Trend reports via Georgian media.
As he said at a press conference, this is confirmed by the assessments of a number of international financial organizations.
"It is very difficult to do anything good in the financial sector when there is a crisis. In the previous period, the National Bank imposed additional capital requirements, which created very good buffers for banks to deal with stressful situations; At the same time, the quality of assets is sustainable since we introduced the regulation of responsible lending and we have taken many measures to reduce the dollarization of loans," said Gvenetadze.
According to him, the regulation of responsible lending to individuals has deserved a lot of criticism in its time, but the fact is that without these measures and de-dollarization, the financial sector today would not be able to cope with the difficulties it has today.
"If not for the steps we have taken, we would have borrowers today who would be burdened with debts, which would be impossible to service at all, and this would have created a risk to financial stability. Therefore, all the decisions made by the National Bank were absolutely timely, absolutely correct, and without it, we would not have been able to cope with the current crisis," said the NBG President.
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