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Finance Minister Discussed New Bank Regulations and Pension Reform

Minister of Finance of Georgia, Ivane Matchavariani paid the visit to the Parliament of Georgia. He discussed new bank regulations, pension reform and other important topics at the hearing of the Budget and Finance Committee. 

Minister was asked to come to the Parliament by two factions from parliamentary minority – “European Georgia” and “European Georgia – Movement for Liberty”.
In regards to new bank regulations Machavariani stated that its main aim is to support long-term economic growth in future.

“One third of employable citizens was in black list. Online loans were often issued and the percentage rates often amounted to 1000. This is not just a social issue. This is an importance economic problem. How can you imagine the economy to grow when the major part of the working force is destined to work in the non-formal sector”, stated Machavariani.

Finance Minister also commented on the decrease of constructions in the country. According to the Minister, the decrease in this sector was noted even before the regulations. He named several reasons for this change, including stricter regulations, stricter rules for permission.

According to Matchavariani, another hindering factor for that is the decision that the loans cannot be issued in foreign currency with the equivalent for 200 000 GEL or more. He did add though that this decision served as the step forward for the Larization process.

Finance Minister also pointed out the aspects of new bank regulations that he personally does not agree with:

“I did not agree with more regulations concerninc mortgage. My position was to wait and observe the market. I also had some disagreement [with National Bank of Georgia] about the approval mechanism. National Bank of Georgia however is an independent institution and it acts more carefully”, stated Matchavariani.

Machavariani was also asked about the new pension system and he stated that the pension system will result in the increase of workplace from the very first year.