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TBC Bank Director General: NBG Regulations will Slow down Economic Growth Pace by 0.8%

New NBG regulations for raising the crediting portfolio to 15% from 12% annually are normal and acceptable, TBC Bank director general Vakhtang Butskhrikidze noted after the working meeting dedicated to the new regulations on retail crediting.

“The most important thing is that the National Bank of Georgia (NBG) and we, commercial banks, believe that the new NBG regulations for raising the crediting portfolio from 12% to 15% annually is normal and acceptable. Averaged distribution of portfolio is as follows: the retail credits portfolio will rise to 5%-7% and the remaining portion will go to small and medium corporate business crediting; We find this regulations acceptable too. At the same time, the banking sector and the National Bank have different considerations on expected influence of the new regulations on employment and economy”, Butskhrikidze said.

At today’s presentation that the banking sector held for NBG, Butskhrikidze noted that the new regulations will slow down the economic growth pace by 0.8% for a year.

We remind you that according to the NBG forecasts, the new regulations will slow down the economic growth by 0.6%, while the Banks Association forecasts 3% downturn.