National Bank approved the rule of extending loans to physical persons
National Bank approved the rule of extending loans to physical persons

The National Bank of Georgia approved the rule of extending loans to physical persons.

According to the Bank, the goal of the regulation is to support stable functioning of the financial system of Georgia and to encourage the healthy system of responsible lending, which in turn will contribute to sustainable development of the country’s economy.

“According to the basic principle of regulation, the financial institution should not impose a loan or other liability (guarantee) without studying a person’s solvency. The regulation shall apply to all the loan issuing entities under the supervision of the National Bank”, – the statement released by the National Bank states.

The regulation will be enforced for all organizations simultaneously started from January 1, 2019.

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