The number of micro-financing organizations dropped by 19 in 2019.
As specialists say, the micro-financing sector experienced a loss as the government imposed an upper percentage margin.
Director of the National Bank of Georgia Koba Gvenetadze said today that the system of micro-financing organizations got strong earlier, before the regulations, but the process was not healthy.
He said the NBG regulations in 2019 aimed to reduce the risks caused by the process mentioned above.
''The micro-financing sector should pass the same way as the bank sector did in the 1990s,'' he said, adding only the organizations capable of meeting the requirements will stay on the market.
Gvenetadze said the micro-financing sector ended 2019 with 42 million-GEL profit, adding the growth hit 6%.
He also referred to the regulation that will take effect on February 1.
The new regulation implies the ban of re-mortgage of mortgaged items or property.
Vakho Revazishvili
News Author