Since 2019, natural and legal persons in Georgia have been denied the right to take out foreign currency loans of less than 200,000 GEL. The proposed amendment aims to protect the public from the exchange rate volatility. Banking Association of Georgia supports implementation of exceptions in this respect, with its President Alexandre Dzneladze having announced that companies receiving foreign currency income must enjoy the possibility of taking out foreign currency loans.
Due to the GEL exchange rate being a few percent higher than that of USD and EUR, companies capable of managing currency risks, will have to take out more expensive GEL loans within this new amendment.
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Bela Gelashvili
News Author