New Rules will Protect Citizens in the Banking Area of Georgia
The Sakartvelo authorities have made a new decision on the protection of citizens' rights in the area of the banking sector of the country.
According to the Business Georgia, a new restriction is applied to the players of the Georgian banking market. According to the decision of the National Bank of Georgia, now a bank cannot charge a penalty over 2% from citizens for early loan repayment. Earlier such fines often exceeded 7% of the loan amount.
According to the Head of the "Association of Banks" Zurab Gvasalia, these innovations have already been implemented, they are aimed at the protection of citizens' rights. The modifications will regard both new and old contracts, added Gvasalia.
In the opinion of a financial analyst Lia Eliava, this restriction will somewhat reduce the banks' profit but losses will be minimal. In addition, the expert also thinks it unreasonable to protect consumers' rights using administrative methods. In her opinion, international practice should be applied in these matters.