Collaterals heavy burden for population
Tuesday, October 30The practice of issuing mortgage loans is acceptable worldwide. Georgian banks also use this practice. As official data suggests, existing mortgage loans issued in Georgia have reached more than 4 billion GEL and this amount is increasing. Worldwide, mortgage loans secured with collateral property are issued with a low interest rate, whereas in Georgia, interest rates are still pretty high and sometime reach 20% .As a result, mortgage holders often face the prospect of losing their private property, flats and houses if they default on payments.
Before the elections, President Saakashvili made a special statement on this occasion urging banks to lower the interest rates. So far the situation has not changed.