The FINANCIAL — Bank of Georgia has reduced interest rates on mortgage, customer and auto loans. Interest rates on hypotec credits will be 14.5%. Customer loans has shortened to 20%, as for auto loans it will be offered in 16%. Previously, during global recession interest rates for mortgage loans was 18%, customer loans – 36% and auto loans – 17%.
“We see the increased demand for loans and we estimate it as possitive sign for total market and determiner of recovery of our economy. Presently Bank of Georgia has GEL 360 millions of enhanced capital. We are focused on investing this money in laons,” Irakli Gilauri, CEO of Bank of Georgia, one of the leading Georgian banks, told The FINANCIAL.
Facing sharp increase of deposits Bank continues receding interest rates on deposits. Presently bank stated about interest rate reduction from 0.75% to 1%. In accrordance of terms of loans. Previously, Bank of Georgia has also stated a reduction of interest rates on deposits from 0.25% to 0.5%. Interest rates will be shortened on all types of deposits in any currency.
“The surplus capital and enhanced number of deposits that reached its peak in August made us shorten interest rates on deposits,” Gilauri says.
Bank of Georgia , has also reduced interest rates to 17% for micro loans. Previously this figure was 20%. The Bank has also resumed giving out express and agro loans. This is due to positive predictions about the micro loan sector, Bank of Georgia officials says.
Gilauri stated that the risk factors in micro business were getting fewer. “We offer one of the lowest interest rates to our customers on the market.”
Bank has decided to increase limits on micro business financing. The management of the Bank considers micro business less risky.
Bank of Georgia has also started giving out small sized micro credits; Express Loans. The minimum sum for an Express Loan is GEL 10,000 and the term 18 months. This type of loan is acceptable for financing consumer costs, current expenses and so on.
Bank of Georgia has resumed giving out agro loans. The maximum amount for that is USD 100,000, in the terms of 18-36 months.
“The overall tendencies are positive. Demand for credit from good payers continues to rise,” Gilauri mentions.
As Gilauri tells, in 2010, Bank of Georgia expects capital increase and “We want to meet the new challenges prepared”.
Recently bank has made changes in its management team. Ex-assistant of the Director General of Bank of Georgia was replaced by Archil Gachechiladze. Gachechiladze worked at TBC Bank from August 2008.
The Bank has launched a new position of assistant of General Director in the field of international banking. Nikoloz Shurgaia, former General Director of VTB Bank, occupies the new position. Shurgaia will run the operations of international banking and hold a position on the Board of Directors of the Belorussian bank.
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