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MicroFinance Institutions Are Prohibited to Grant Promissory Notes Less Than 100,000 GEL

Head of Micro Finance Organization Government, Beso Shengelaia daclared that the change Micro Finance Organization planned considered prohibiting giving promissory notes up to 100 thousand GEL and it practically means prohibition of promissory notes.

According to Shengelaia, this will be a huge problem for organizations, which get GEL resources with promissory notes- they will have to find different ways.

“On the other hand, the demand of National Bank is also acceptable because there was a finance company which did not manage to give back money”-declared Beso Shengelaia.

According to Shengelaia, after the changes are valid, the spared deposits from population will move to banks, where the benefit is much less than in micro finance organizations. Therefore, this decision takes a chance from customers to get more benefit and also decrease the competition. 

“We were thinking it was possible to create more flexible system, for example, the one like in banks, when it would be possible to demand the capital before giving promissory notes”-declared Shengelaia.