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Giorgi-Papava

Giorgi Papava: Banks did not sell Larization of Loans as a Product

Economists explain less interest of population towards larization program by fewer activities of banks.

Economist Giorgi Papava regards, that banks have not sold larization of loans as a product. They do not convince customers to apply loans in GEL with the same effort as they do in the case of offering their products.

Papava noted with TV-program “Sakmiani Dila” that customers were hesitating linked to the converting loans in GEL despite the government and NBG’s advise to get rid of foreign exchange risks. However, increased monthly fee by 10-30 GEL has turned out decisive for many customers, and they have lost the motivation.

“Banks had a great role, because customers do not have a direct attach with the National Bank, so they have to explain larization program correctly. I do not say that they have deceived anyone but I regard that they have not tried hard”, Giorgi noted.

He notes that citizens often have an error of the present time. So, when they saw that GEL was strengthening, part of the citizens considered that trend of two months had been enough to sustain loans with 9 years maturity in USD – “which has not been correct to my mind”, – Papava notes.