22 October 2018,   15:06
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Commercial banks respond to the Finance Minister and do not agree with his statement

Commercial banks respond to the Finance Minister. The banks disagree with the statement by Mamuka Bakhtadze who named high-interest loans for entrepreneurship as an obstacle for business.

The banks say that the interest rate in Georgian banks is the lowest in the region. According to them, about 60% of the economy is funded by banks.

"The whole gravity of economic development goes to the Georgian banking system. I have summoned the figure, only three billion we have invested in small, medium and large businesses in Georgian companies, according to TBC Bank. We"re going to do that. I can not tell you why we receive such a statement. I know one thing that the banking system is a sensitive topic. If we are in the market economy, market economy means a free, competitive environment. In the country the capital market should be developed, the country should develop places where alternate financing will be created. I repeat once again that the banking system is not an investment tool. The banking system is a credit institution and we do not demand funding for it, "said Mamuka Khazaradze, Chairman of the Supervisory Board of TBC Bank.

Kakha Kiknavelidze, Director General of "Bank of Georgia" says that funding of startups is problematic for banks. According to him, despite this, the Bank of Georgia plays an important role in the development of the country"s economy, in the development of small and medium business.

Mamuka Bakhtadze introduced the initiative of the Economic Development to the journalists today, however, he did not wish to specify details of yesterday"s statement.

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