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Finance Companies to Pay 1000 GEL Fine for Breaching Larization Program Regulations

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.