Deputy Finance Minister announces pension loan interest rates will decrease annually

Georgian Deputy Finance Minister Mikheil Dundua on Wednesday announced interest rates on pension-backed loans would see annual reduction, in comments on Government initiatives for pensioners and socially vulnerable citizens.

Georgian Public Broadcaster cited Dundua as saying the Government would work to apply the newly reduced upper interest rate limits for pension-backed loans to loans issued prior to the change. 

The announcement follows news this week on the reduction of the upper limit for the rates to around 26 percent, following a campaign by the Citizens political party and a relevant decree by the Prime Minister.

The Minister also revealed plans to continue lowering the rates by “refining” and improving policies in the social sector, and noted the International Monetary Fund’s recognition of the Georgian social protection net in the region as “exemplary” in its report.

Dundua added the Government would continue to work with the National Bank and Liberty Bank - the latter involved in issuing domestic pension-backed loans - to “find common ways” over decisions on previously issued loans.