Georgian gov’t increases threshold under which loans must be denoted in national currency
Georgian PM Mamuka Bakhtadze stated that favoring the national currency plays a crucial role in the macro economy. Photo: N.Alavidze/Agenda.ge.
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Georgian banks and financial organizations will have to issue loans up to 200,000 GEL only in the national currency.
From January 1, 2017 banks were obliged to issue loans worth up to 100,000 GEL only in the national currency, the Georgian lari. Now the threshold will rise to 200,000 GEL.
The change will affect both physical and legal entities.
Georgian Prime Minister Mamuka Bakhtadze stated today that the change would make Georgia’s macro-economic situation more stable and protect the national currency from external risks.
The Georgian national currency, the lari, has depreciated in value by 6.5 tetri against the US dollar and by 4.3 tetri against the Euro in just one day.
Georgia’s National Bank (NBG) has released a statement in which it explained that the current devaluation of the national currency, the lari, is temporary and is caused by false expectations amongst the public that the lari would be devalued in autumn.
Modernised 100 GEL (Georgian Lari) banknotes in bright new colours and sizes is coming into circulation today around the country.
Georgia’s vibrant new banknotes are gaining international recognition after jointly winning the Regional Banknote of the Year 2016 award in Bucharest, Romania.
The bank debt of over 600,000 Georgian citizens, including those on a so-called ‘Black List’ will be written-off, announced the Prime Minister of Georgia Mamuka Bakhtadze this morning.
A website has been created to help Georgian citizens apply to have their bank debts cancelled. Vali.ge will enable some 600,000 blacklisted Georgian citizens in the process.
Prime Minister of Georgia Mamuka Bakhtadze went live on Facebook on December 11 to answer the questions of the Facebook users regarding different topics including the debt cancellation programme.
Prime Minister Giorgi Gakharia has urged Finance Minister Ivane Matchavariani to consider the possibility of decreasing the foreign currency lending threshold from 200,000 GEL ($67,168.2/€60,687) to 100,000 GEL ($33,584.1/€30,343.5) at the government meeting earlier today.
Natia Turnava, the Acting Governor of the National Bank of Georgia, on Wednesday said individuals would be able to take out loans of “any amount” in the currency of their income with the existing ₾200,000 ($74,358) limit set to be removed starting January 1, 2024.