Upper Percentage Limits on Loan Rates

There has been reaction to the Justice Ministry’s initiative to set an upper percentage limit on loan rates. The president of the Association of Georgian Banks Zurab Gvasalia has told TV3 that the initiative requires careful study and discussion. According to him, the issue is sensitive, and reckless statements could cause panic within the banking and microfinance sectors. The chairman of the Microfinance Association Archil Bakuradze states that all government initiatives designed to create a healthier environment within the microfinance sector are welcome, but warns that the planned legislative changes could create some confusion within the sector. In certain individual microfinance cases, the loan rates exceed the 60% mark.