Deputy Finance Minister announces pension loan interest rates will decrease annually
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. Photo: Georgian Public Broadcaster
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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.
The upper limit for interest rates on pension-backed loan payments is decreasing across Georgia following a campaign by the Citizens political party.
Commercial banks in Georgia loaned ₾43.65 billion ($16.17bln) and received deposits of ₾42.62 billion ($15.79bln) in November 2022, the latest data from the National Bank of Georgia shows.
Commercial banks in Georgia loaned ₾43.24 billion ($15.87bln) and received deposits of ₾42.31 billion ($15.53bln) in October 2022, the latest data from the National Bank of Georgia shows.
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 Pension Agency of Georgia has estimated the net asset value of the country’s pension fund at ₾2.97 billion ($1.1 bln).
New transparency requirements will come into play for financial organisations operating in Georgia starting April 1 in a bid to better protect the rights of consumers, the National Bank announced on Friday.
Commercial banks in Georgia loaned ₾44.80 billion ($16.94bln) and received deposits of ₾44.31 billion ($16.76bln) in December 2022, the latest data from the National Bank of Georgia shows.
While the Georgian Government is “fully complying” with the international sanctions imposed on Russia for its ongoing invasion of Ukraine, imposing individual sanctions on Russia would not bring “any good” for Georgian citizens, Deputy Finance Minister Mikheil Dundua told TV Imedi on Monday.
The database of the Credit Information Bureau, a body providing banks and other financial organisations across Georgia with information about financial and credit circumstances of customers, will expand its database to include information on money remittances from abroad, the National Bank of Georgia said on Wednesday.
Commercial banks in Georgia loaned ₾44.47 billion ($16.9 bln) and received deposits of ₾43.64 billion ($16.5 bln) in January 2023, the latest data from the National Bank of Georgia shows.
Commercial banks in Georgia loaned ₾44.45 billion ($17.27bln) and received deposits of ₾43.61 billion ($16.94 bln) in February 2023, the latest data from the National Bank of Georgia shows.
The Pension Agency of Georgia on Friday said pension assets in its fund were worth ₾3.66 billion ($1.42bln), while net assets amounted to ₾631 million ($245mln).
Georgia’s Pension Agency will invest savings from the pension system in shares of major international companies including Apple, Google and Toyota, Chief Investment Officer Goga Melikidze revealed on Friday.
Advertising of loans secured by pensions is now banned in Georgia without individual consent of pensioners, the National Bank announced on Wednesday.
Natia Turnava, the Acting Governor of the National Bank of Georgia, on Thursday said the decision to lower interest rates on loans taken by over 150,000 pensioners - made by Liberty Bank in consultation with Prime Minister Irakli Kobakhidze - was “socially significant” and “reasonable”.