Fall in Demand on Loans

Why has there been a fall in demand on loans? According to the National Bank’s official statistics, against the background of lower interest rates, the demand on loans has been reduced. The director of the Association of Georgian Banks has explained that there are several significant reasons for this, the chief of which are the slow economic growth rate and the high levels of unemployment.
Archil Bakuridze, the head of the Microfinance Organisations Board, has told TV3 that the activity on the microfinance market has been increasing periodically. According to him, demand has always existed within this segment of the economy, which provides financing for small and medium scale businesses, and according to the recent figures, the situation has not changed.