Acting National Bank Governor: reduction of loan interest for 150,000 pensioners “socially significant” decision
Natia Turnava said the National Bank would work “intensively” with Liberty Bank to decide the “manner” of reduction of interest rates and the start date for the change. Photo: NBG
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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”.
Interest reduction will apply for both overdrafts and regular loans. This will affect over 150,000 loans, with an average interest rate of more than 30 percent. It is important to note that this change will not negatively impact the financial situation of Liberty Bank”, Turnava said.
She added her office would work “intensively” with Liberty Bank to decide the “manner” of reduction of interest rates and the start date for the change.
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.
Advertising of loans secured by pensions is now banned in Georgia without individual consent of pensioners, the National Bank announced on Wednesday.
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.
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”.
Georgian Prime Minister Irakli Kobakhidze on Monday instructed the Minister of Health to present the new project for Tbilisi’s Central University Clinic, also known as the Republican Hospital, “as soon as possible” with the goal to start the construction this year.