The FINANCIAL — Bank of Georgia, one of the leading banks in Georgia has separated its executive governance from the supervisory board.
“The new system is a standard of modern corporate governance, providing better administration and better control of a company’s management by the supervisory board. At present in western countries and America there is a tendency to implement this system,” said Giorgi Chiladze, Deputy CEO of Bank of Georgia.
“The change in corporate governance won’t change the Bank’s politics. The decision of separation of executive governance from the supervisory board was made last year.
The management of the supervisory board has also changed. Nikoloz Enukidze made the decision to leave the position of Chair of the board,” declared Chiladze.
Enukidze had led the board for 4 years. According to Chiladze, the structural changes were under Enukidze’s strategic vision and architecture.
Moreover, Bank of Georgia has announced a new offer for mortgage loans. Individuals who take a mortgage loan won’t have to pay the first month’s interest amount. The term of loan taking is from 15 June to 31 July.
“Considering it is summer and the fact that our client’s budgets are loaded, Bank of Georgia is discharging the first month’s interest payment giving them the opportunity to more freely manage their finances,” said Chiladze.
Furthermore, borrowers will get free life insurance during the full term of the loan.
Mortgage loans will be available for physical individuals living in Georgia whose monthly income consists of 600 USD and are willing to purchase, build or repair a house, plot, office space as well as furniture.
According to Bank of Georgia there has been a 35% increase in demand for mortgage loans in the second quarter of 2010 compared to the first quarter.
“We provide mortgage loans so long as the building is already finished. Loans are only given for building projects if we are financing the projects so as to have a guarantee that the construction will be completed,” said Chiladze.
According to Chiladze the total loan portfolio reached 52 million GEL in 2010.
“There is differentiation in the currency of loan giving. The majority of short-term borrowings are in GEL while long-term loans are provided in USD. In the case of mortgage borrowing, almost half is in GEL.
To increase the GEL loan portfolio Bank of Georgia is actively using short-term loans provided by National Bank of Georgia,” declared Chiladze.
Chiladze says that for saving accounts the population still prefers to have USD in their accounts rather than GEL.