A new restriction for microfinance organizations, commercial banks and lenders from February 1, 2020. The President of the National Bank released a statement on October 11. There is a restriction on loan issuers that are prohibited to transfer of property to a bank.
“A microfinance organization or lender within the framework of the agreement signed prior to the enactment of this order be prohibited from replacing vacated property with the property received to secure the loan. This prohibition also applies to the unused portion of the credit line limit. Commercial banks, within the framework of the agreement signed prior to the enactment of this order are prohibited from releasing the property, which was adopted by the micro finance organization, the lender and non-bank depository institution to cover a credit union loan", reads the statement of the President of the National Bank.
Bela Gelashvili
News Author