14 August 2022,   04:13
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Pension-backed loan payments set at 26% upper limit

The Interagency Commission for Determining the Terms of Banking Services discussed today the pension loans scheme with the members of the ruling team, the opposition, banks and non-governmental organizations.

The Commission has ruled on establishing a 26% upper limit for loan payments backed by pensions, which may be further reduced in the future based on inflation in Georgia.

It revealed the limit as part of its work to decide on the terms of a competition that will select the bank for issuing pensions, and selecting pension loans.

A meeting under the chairmanship of Levan Davitashvili, Minister of Economy, decided to select a bank for the tasks of issuing pensions and pension-backed loans within the next month.

“The main task of the initiative was to improve the services for pensioners in different parts of Georgia, a success of the commission in its prior work. It is important that today’s decision also creates space for enhancement, and that conditions will improve for our retirees. Their rights will be protected as much as possible”, - said Levan Davitashvili.

The commission member Irakli Zarkua, Georgia Dream, said the state would pay GEL 15 million to the pension disbursing bank annually, “a kind of the Government subsidy to slum the interest rate for retired employees”.

Giorgi Vashadze, Strategy Agmashenebeli opposition party leader, claims “joint fight resulted in today’s decision”.

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