Francois Painchaud, resident representative of International Monetary Fund (IMF) in Georgia noted that the new regulations in the financial sector aim to reduce excessive indebtedness starting January 1, 2019.
Francois Painchaud released the statement to answer the question by InterPressNews agency regarding competition level in the Georgian banking sector and the new regulations that are to come into force on January 1, 2019.
“Your question refers to the responsible crediting. We believe that these regulations have appropriate objective. Its objective is to reduce excessive indebtedness for low-income citizens. Naturally, these regulations imply slower growth in crediting, despite this process will bring temporary negative effect on domestic demand growth. In whole, we believe that this is a necessary policy”, Francois Painchaud noted.