National Bank bans advertising of pension-secured loans to protect pensioner rights
Advertising of loans secured by pensions is now banned in Georgia without individual consent of pensioners, the National Bank announced on Wednesday. Photo: Nino Alavidze/Agenda.ge
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Advertising of loans secured by pensions is now banned in Georgia without individual consent of pensioners, the National Bank announced on Wednesday.
The change will apply to pensioners whose sole income is pension or other state social allowance, the Bank added.
By the new decision of the NBG, commercial banks will not be able to advertise pension-secured loans offering loans to customers on the basis of pension or other social payments”, it noted.
The NBG also said the change would protect vulnerable groups from uninformed decision-making and debt burden, saying the move would “support the formation of an environment favourable to consumers and introduce a high standard of protecting their rights”.
The upper limit for interest rates on pension-backed loan payments decreased across Georgia in January, with Deputy Finance Minister Mikheil Dundua saying interest rates on pension-backed loans would see an annual reduction.
Georgian Prime Minister Irakli Garibashvili on Tuesday said his office would reveal a new decision about the regulation of the pension system for the country’s law enforcement and defence sector, pledging to ensure additional efforts for providing “decent working conditions” to employees in his comments for Veterans’ Day.
The Pension Agency of Georgia on Thursday said it had successfully obtained the ISO 27001 certificate, which confirms the organisation had been audited and their “effective” information security management system has been confirmed to be in accordance with the requirements of international standards.
Natia Turnava, the Acting President of the National Bank of Georgia, on Wednesday met the members of the Investment Council of the country's Pension Agency to review revisions in the legislation on cumulative pension and investment plans.
Georgian Prime Minister Irakli Garibashvili said pensions for pensioners aged 70 years and older would increase by ₾50 ($18.62) and become ₾415 ($154.58), while for pensioners under 70 it would be raised by ₾20 ($7.45) and reach ₾315 ($117.33).
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.
More than 150,000 pensioners will see a reduction in their loan interest rates, following a decision reached during a meeting on Thursday between Georgian Prime Minister Irakli Kobakhidze, Natia Turnava, the Acting Governor of the National Bank of Georgia and the Chief Executive Officer of the Liberty Bank Beka Gogichaishvili.
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”.
Natia Turnava, the Acting Governor of the National Bank of Georgia, on Friday told the Parliament the Bank was “actively promoting” establishment of “responsible lending principles” in the domestic market to protect consumers from “excessive debts”.