Under new regulations, microfinance organizations will have to cheapen loans and create obligatory reserves on portfolio.
Starting September 1, top margin for efficient rate growth will be 50%.
Moreover, starting September 1 (2018), microfinance loans will be divided in categories and reserves will be determined due to corresponding rates: a) standard – 0%; b) for attention – 10%; c) nonstandard – 30%; d) doubtful – 50%; e) hopeless – 100%.
Mortgage loan is strongly guaranteed if the correlation to loan security price is (LTV) <75%. With gold and liquid security, the coefficient is 90%, with other movable property – LTV- 40%.
Restructured loan is classified negatively if it is not valuably secured by liquid asset.
As of H1/2018, the so-called online loans with high interest rate (71 organizations), have revenues of 30.4 million GEL (Q1/2018 – 13.2 million GEL), and from fines – 15.2 million GEL (7.4 million GEL in Q1/2018).