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archil_mestvirishvili

Lowering Effective Interest Rate to 50% Cannot Control Interest Rates

Lowering the effective interest rate to 50% cannot control interest rates, Archil Mestvirishvili, vice president of National Bank of Georgia (NBG) noted at the NBG event, where a new project about financial education was introduced.

“One of the changes that will be submitted to the Parliament calls for lowering effective interest rate to 50%, while we introduced 100% top margin at the beginning of 2017.

This step cannot control interest rates. This instrument was introduced to prevent issuing risky product with high interest rate without examination of solvency level”, Archil Mestvirishvili noted.