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World Bank: MFO Borrowers’ Rights should be more Protected in Georgia

The World Bank recommends to more  protect the rights  of the micro-finance organizations’ consumers.
It became known after the meeting held in the  Parliament. Tamaz Mechiauri, the  Budget and Finance Committee Chairman, and the first deputy of the Committee’s Chairman Nodar  Ebanoidze,  yesterday met with a group of experts from the World Bank who  expressed their recommendations to the Georgian side.

The meeting touched on the importance of deposit insurance system which became  one of the obligations after signing the association agreement with the EU. According to them, the system has a considerable financial importance and contributes to the functioning of the  banking sector.

The draft law on a pension reform was also discussed at the meeting, according to which, the current pension system will be replaced by  the retirement savings system. The WB  experts spoke about the need of the pension reform in Georgia. As they say, a centralized pension fund should be created and  familiarized the lawmakers with  experience of foreign countries.

As the experts noted, it is desirable to prepare amendments to the Law “On Microfinance Organizations”, as the borrowers’ rights must be more protected by law. They say in the Parliament that  the experts stressed  the importance of informing the population  over financial issues.

“Today’s meeting was held upon the World Bank’s initiative. I think the Committee should be more involved in this process and Parliament should  get as more information as possible”, Nodar Ebanoidze said after the meeting.