Georgian bankers say they do not consider it necessary to decrease the volume of consumer loans, the National Bank believes that everything depends on the choice of the consumers.
“Now the most important is the position of the consumer. If he wants to buy something on credit, then he should have such opportunity. It should also mentioned that lending has reduced because of the situation in the economy. Liquidity remains high, and in a case of a decrease in consumer lending, business should not have problems in obtaining loans. Today, banks can meet the demand for both corporate and individual services. The bank grants loans for buying furniture for the house as well as for the installation of new equipment at the plant,” Vice-president of the National Bank o Otar Nadaraya says.
David Tsaava, Basisbank CEO, also does not see any problems in the growth of private lending.
“We are focused on the consumer, based on this, our demand is quite adequate. Although we cannot say that those who wish to obtain consumer loans dominate in our bank. Business lending, including small and medium, also grows,” he notes.
At the same time, experts consider it necessary to tighter conditions for issuing consumer loans, saying that these loans are mainly spent on the purchase of things and not on the growth of income.
“Ultimately, much of the citizens’ income is spent on servicing of loans taken for the purchase of a refrigerator or a new phone. This does not improve the social conditions of citizens, even worsen,” they say.
According to data for three quarters of 2015, Georgian banks issued GEL 2.4 billion for consumer loans, which is 18% more than in the same period of 2014.