Pension-backed loan payments set at 26% upper limit by PM-initiated commission

The Interagency Commission for Determining the Terms of Banking Services has ruled on establishing a 26 percent upper limit for loan payments backed by pensions, which may be further reduced in the future based on inflation in Georgia.

The commission, initiated by prime minister Irakli Garibashvili, revealed the limit as part of its work to decide on the terms of a competition that will select the bank for issuing pensions, and selecting pension loans.

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A meeting of the commission, held on Friday under the chairmanship of Levan Davitashvili - the Deputy Prime Minister, Minister of Economy and Sustainable Development - decided to select a bank for the tasks of issuing pensions and pension-backed loans within the next month.

Davitashvili said the main task of the initiative was to improve the services for pensioners in different parts of Georgia, noting a success of the commission in its prior work.

It is important that today's decision also creates space for enhancement, and that conditions will improve for our retirees. Their rights will be protected as much as possible,” the minister said in comments.

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Davitashvili also added the decision on the loan payments was “all-inclusive” and involved representatives of various agencies from the Georgian government, as well as members of the parliament, from both the ruling party and the opposition.

The meeting of the Interagency Commission was attended by members of the executive and legislative branches, including representatives of the parliamentary opposition parties. 

The National Bank of Georgia is also involved in the activities of the commission, which was set up on 28 July 2021 in accordance with the assignment of the Head of Government.