Koba Gvenetadze, president of the National Bank of Georgia (NBG), has signed a decree, under which finance companies will pay a 1000 GEL fine for having breached the Larization program regulations, such as:
- Loans up to 100 000 GEL must be issued only in GEL to physical bodies;
- Annual effective interest rate must not exceed 100%, including, in case of loan maturity period extension.
- Total amount of any financial fine imposed on borrowers for violation of any commission fee, financial expenditures, loan agreement must not exceed annual 150% of the remaining principal sum of the loan.
- In the event an entrepreneur or a group of interconnected entrepreneurs attracts money resources in any form from more than 20 physical bodies, then the amount of finances attracted from each physical body must not be less than 100 000 GEL.