President of the National Bank of Georgia Koba Gvenetadze praised the government-elaborated support package for the development sector.
In his words, subsidies will provide positive results; the population will enjoy increased access to the purchase of apartments with lowered credit risks.
Gvenetadze also highlighted the negative aspects of the subsidies.
"Subsidies always have positive and negative sides. Any subsidy can create a sense of injustice, as not everyone will be able to take advantage of this. However, many countries do this to cope with a specific situation,'' NBG President said.
As he added, there is a risk of the termination of the subsidy program to cause fluctuations in the market.
"But the insurance mechanism is a decreasing volume of the subsidy, as when the refinancing rate decreases, the subsidy suspends,'' Gvenetadze claimed.
''In general, since we have an extraordinary situation, extraordinary steps are necessary. I do not think that it will be destructive for the country. I think it will be good for financial stability," Gvenetadze reiterated.
Bela Gelashvili
News Author