Business Ombudsman Calls for Softening of Banking Regulations

Georgian Business Ombudsman Irakli Lekvinadze says that the new tight banking regulations have affected sales of various business sectors, including companies employed in construction and retail trade.

Lekvinadze stated that it is important to mitigate the new banking regulations because the negative effect of the regulations is already obvious in the hardware stores and other business sectors.

“Sales of these companies have reduced by about 40-60%, and this was especially acute in the regions. The regulations also affected the construction sector," he stressed.

The Business Ombudsman added that softening the regulations is necessary to prevent a dramatic influence on the business sector.

The new banking regulations took effect in Georgia on January 1, 2019 meaning that people will not get loans from banks if there are no solid guarantees that they will be able to pay it back on time.

By Thea Morrison

Related stories:

Georgia’s Finance Minister Does Not Support Tightened Lending Regulations

National Bank of Georgia Tightens Lending Regulations

New Lending Regulations to Take Effect from January 1