The President of the Banking Association Alexander Dzneladze considers that for assessing of the effect of the regulation enacted since the 1st of January of this year in connection with crediting of physical bodies the data of January-February are not enough.
As he stated in the program “Forbes Week with Giorgi Isakadze” devoted to this issue, according to the statistics in January-February a credit portfolio was decreasing in the previous years as well, however, a number of the issued credits have been decreasing since the previous year and accordingly a definite impact of the regulation is evident.
“It had an impact on an extent of risk and quantitative indicators. Since May number of loans have been decreasing, in fact, a volume of one loan is increased and if we see from the viewpoint of term, the rise is the highest in 5-10 year termed loans. Proceeding from this, definite trends can be estimated, but it is not the indicator which we expect as a result of the regulation”, – stated Dzneladze.
Regarding this issue Chairman of the Association of Microfinance Organizations Besik Shengelia stated that specific regulations in crediting policy was necessary; however, he doesn’t agree with a concern of the representatives of financial sector who think thank a problem of indebtedness was created by the overdue loans accumulated generally in the micro financial sector.
“Based on our analysis we can conclude that the loans practically proportionally are distributed. About 50% of the overdue loans were owned by banks, and 50% to other organizations. It means that the main problem was that, on the first hand, funding was going to the nonproductive portfolio and, on the another hand, the problem was caused by excessive and rather simplified delivery. Besides, based on the overdue loans we can boldly say that, in about 100% cases was that the borrowers were taking loans simultaneously and a culture of consumption was deteriorated and all was transformed into the credit mania”, – stated Shengelia.