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Interest rates down

By Messenger Staff
Monday, March 15
The National Bank of Georgia (NBG) thinks that banks have to reduce interest rates on loans because high interest rates hinder economic development. NBG President Giorgi Kadagidze has stated that the banks' current high interest rates are inappropriate and should not exceed 12-13%, a level which would be sustainable if the banks conducted a wise policy. Today the consumer loans carry a 20-24% interest rate.

Vice President of the Georgian Business Association Giorgi Isakadze agrees with this and thinks it quite realistic to have a 13% interest rate on consumer loans. President of TBC Bank Vakhtang Butskhrikidze thinks that decreasing interest rates will be possible if the bank has cheap resources. He agreed that low interest rates make it easier for creditors to repay their loans and thus lower bank risk.