Tbilisi (GBC) - The lending regulations, which are gradually tightening (2018-2025) for decent purposes, including protecting borrowers from excessive debt and banks from dollarization of their portfolios, will not be eased to save developers.
The recent challenge for developers is the lack of money, which is preventing them from completing projects. However, as lenders say, the problems are only faced by small developers.
We spoke to several bankers about the trends in the real estate market, including Ucha Saralidze, Commercial Director of Isbank, who told us that the real estate market remains in high demand. Prices are stable. Small companies have had a little difficulty, but this has not been reflected in the market. Their cases have been taken over by branded companies.
NBG President Natia Turnava excludes any easing of the rules. Because the regulator sees opportunities through the prism of financial stability.
According to bankers, several combinations are being considered, including reviving a client's frozen funds in the bank. Expanding the collateral base, although the bank and the loan are still suitable for less risky clients, large, branded companies. For small businesses in need, there is still one solution - selling assets profitably. How much competition there is in this direction and how healthy it is, we will not ask. We will wait for the MPC meeting on November 5, and by then the NBG package will also be known.
The NBG reduced the co-financing requirement, from 15% to 10% at the beginning of the year, although the bank still sets a limit of ≥15% for risky cases.