The banking and finance sectors started establishing fair rules of the game, Finance Minister Mamuka Bakhtadze said after today’s government meeting. At the special briefing Mamuka Bakhtadze discussed a new bill submitted to the Government meeting.
The legislative initiative promulgates several important principles, he said.
“First, no lender will be authorized to claim any other property in addition to the already mortgaged thing. Secondly, pawnshops and lenders, the so-called private usurers are banned to take movable and immovable properties in mortgage;
Annual effective rate declines to 50% from 100%. Amount of fines also declines and all financial institutions or private lenders will be banned to impose a fine on the total amount of a loan. New and fair rules of the game will be applied to the banking sector, microfinance organizations, credit unions, pawn-shops and private lenders, the so-called usurers. Those wishing to continue pawn-shop business will be obliged to create a joint computer system in a reasonable period for registration of all mortgaged things to prevent criminal cases”, Minister of Finance Mamuka Bakhtadze said.
Because of high public interest in this issues, on May 29 a presentation will be held to provide detailed information on principles of the new legislative initiative, Mamuka Bakhtadze said.