Interest Rates Increase on Loans

Instead of decreasing, interest rates on loans in most of Georgian banks are increasing. If the mortgage for a loan was issued with a rate of annual 27% interest in July, 2011 already in August the mortgage loan annual interest rate increased to 41%. As analysts, observe interest rates increase on consumer loans and business loans as well. Of course such kind of increase will definitely slow down business activities in the country. The president of the National Bank thinks that such increases of interest rates is not adequate for the economy in the country. According to him, normally interest rates should be no more than 13 % annually.