The News in Brief
Wednesday, May 22
NBG Observing Installment in Georgia
The National Bank of Georgia (NBG) reports that the internal installment system is beyond its regulation, but the central bank will actively monitor this process and will apply appropriate actions if necessary.
NBG noted that during the internal installments, the borrower might not be able to use the limits and restrictions imposed on financial institutions by the NBG. "According to civil law, the installment is not under the National Bank's regulation and supervision, but we must note that the internal Installments, during the issuance of which, the borrower's solvency is not studied, is pretty risky in its content, especially in terms of consumer protection," stated the NBG.
Reasons behind Lari Depreciation As for today, the National Bank of Georgia has held the following exchange rate: 1 USD = 2.74 GEL.
A significant difference can be noted in commercial banks compared to the official exchange rate.
Finance Minister explains the depreciation of Lari by external factors and believes that the decline in national currency is not reflected in the price of consumer products.
Experts and government officials agree that the Lari was affected mostly by external factors, particularly the depreciation of the Turkish Lira.
It was noted that it is important to decrease dependence on foreign factors in order to ensure lari stability.
Macroeconomic indicators, which influence Lari, are positive for now.
(By Mariam Chanishvili)
The National Bank of Georgia (NBG) reports that the internal installment system is beyond its regulation, but the central bank will actively monitor this process and will apply appropriate actions if necessary.
NBG noted that during the internal installments, the borrower might not be able to use the limits and restrictions imposed on financial institutions by the NBG. "According to civil law, the installment is not under the National Bank's regulation and supervision, but we must note that the internal Installments, during the issuance of which, the borrower's solvency is not studied, is pretty risky in its content, especially in terms of consumer protection," stated the NBG.
Reasons behind Lari Depreciation As for today, the National Bank of Georgia has held the following exchange rate: 1 USD = 2.74 GEL.
A significant difference can be noted in commercial banks compared to the official exchange rate.
Finance Minister explains the depreciation of Lari by external factors and believes that the decline in national currency is not reflected in the price of consumer products.
Experts and government officials agree that the Lari was affected mostly by external factors, particularly the depreciation of the Turkish Lira.
It was noted that it is important to decrease dependence on foreign factors in order to ensure lari stability.
Macroeconomic indicators, which influence Lari, are positive for now.
(By Mariam Chanishvili)