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President of NBG Responds to the Critics of Larization

President of NBG Responds to the Critics of Larization

The act is an insurance mean from foreign exchange risks and onetime event, which has been used in other countries and Georgia is not unique in this term, – Koba Gveneteadze, president of National Bank of Georgia has noted to the Public Broadcaster and responded the critics as well.

Koba Gvenetadze declares that there has been some confusion linked to larization.

“Larization is onetime social project, which the government plans to fund. This is done for those borrowers, who have taken loans before January 1, 2015 and who have suffered the most due to the changed exchange rate. The aim of the project is to give some relief of their burden. There is a great grief in the society of that people, who have such problem. As they have loans in USD and their salary is paid in national currency. So their loans got expensive “, – said Gvenetadze.

The chief banker of the country declares that nobody has obligation on larization of loans and this voluntary process.

Gvenetadze responds to the critics, why the debt must be paid by subsidy, i.e. why the funds of taxpayers should be directed to assist mortgagers.

“This is part of our society, who needs assistance. That’s recall disasters in the region, the state helps them and makes subsidy, and in that case, we do not have feeling “why are we helping”. This is vulnerable segment and that is why we are helping”, – the banker notes.

According to him, this offered mechanism will be maximally suited to the situation of borrowers.

“There is much talk, that other percent might be noted. Of course, there is a difference between the rates of USD and GEL. But it must be made to ensure the costs. This issue is discussed in lot and it is not unique, or anything which has never happened. The government has to be very kind and we want to assist them technically in the implementation of the project. This is a single social project”, Gvenetadze declared.