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Loans Tied to Refinancing Rate Became more Expensive in Georgia

Loans Tied to Refinancing Rate Became more Expensive in Georgia

Loans tied to refinancing rate have become more expensive for 8 564 people in Georgia. The NGO Society and banks reports.

According to the data, as of November 1, 2015, a total of  5 838 people have mortgages tied to the refinancing rate while 2 726 legal entities got a business loan.

The Monetary Policy Committee (MPC) of the National Bank of Georgia (NBG) decided to increase the refinancing rate by 50 basis points to 8.0 percent. The monetary policy decision is based on the macroeconomic forecast, according to which the tightening of the monetary policy by the National Bank of Georgia must have positive effect on the decrease in inflation expectations. Unless other additional shocks take place, further monetary tightening in the coming periods is not to be expected.