Tbilisi (GBC) - The term of consumer loans is still prolonged. The market expects an extension of unsecured credit to 4 years by the summer, after 1 year of shortening.

In the short term, frequent regulations are no longer considered harmful to the sector. Periodic change of parameters (recalibration) is no longer considered negative in the reality of existing challenges. On the contrary, the president of the NBG considers the recalibration as a landmark opportunity of his term of office.

According to the NBG, Georgia has followed other countries in implementing certain measures, which is considered a prudent policy of the NBG.

So the regulations were also included in the inflation management process and justified in some cases. Eg: while the MP change is ineffective... e.g. (Among them) shortening the term of consumer loans to 3 years, in August. Before that, the term of foreign currency mortgages was shortened to 10 years, which will not be subject to recalibration, because the priority of larization is more long-term.

The purpose of shortening consumer loans to 3 years was explained by the Department of Macroeconomics and Statistics of the NBG. The regulation was supposed to contribute 1% to the overall lending slowdown.

According to the NBG's interactive statistics, since August (the regulation entered into force on August 15), the pace of lending (annual growth) has decreased by 15% (by 2.5%p).

This August regulation and its 5-month effect is the foresight of the NBG or global unpredictability, it is difficult to assess, because it is also difficult to predict what would have happened without the regulation.

The main thing is that there is a possibility of recalibration.

President of the Banking Association Eleko Dzneladze informed us about the expected extension of the term of consumer loans from 3 to 4 years.