“In our opinion, suspending of this provision is an income”, – answered the President of the Banking Association Alexander Dzneladze in connection with the NBG’s regulation.
According to him close communication with the business sector is necessary.
“Unfortunately, I am a new one and can’t exactly say something about any kind of communication. These provisions are enforced. I have no answer on the question where there hadn’t been communication or meetings with the Farmers Association. This will not be impacted only on the banks and microfinance organization. It refers to all of us. Not only new borrowers will not be funded, the oldest ones will not add credit any more,” – says Dzneladze.
I’d like to remind you that the regulation enters into force since the 1st of November and the Decree which will enter into force in several days establishes additional restrictions for loans. Mainly:
1. A maximum 15 year limit is established for hypothecs;
2. The consumable credit provided by a real estate will be maximum 10 year;
3. Autocredit will be maximum for 6 years;
4. Duration of any kind of loan shouldn’t exceed 4 years.