13.May .2020 18:31

Banking regulations should be simplified in order to recover construction sector from the crisis - RED-CO

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The three-month grace period for loans has been already expired. However, the private sector says that they will not be able to meet its banking obligations without extending the grace period. In the current situation, some of the construction business representatives also talked about the need to simplify banking regulations, along with banking obligations.

"The construction business has not yet returned to its original position, including in terms of sales. That’s why it is very important for banks to postpone bank liabilities until the end of the year. We have already talked to the partner bank about this issue, but I think the market should have a unified approach.

Supposedly, it would be good to ease / abolish banking regulations in order to implement the lending process quickly and without hindrance. This will facilitate the partnership between the construction business and the banks. Among them is the simplification of regulations in the part of mortgage loans.

In times of crisis, what the banking sector can do is setting a rate for the businesses. We can work in many directions to overcome the existing challenges,” said Malkhaz Kunelauri, head of RED-CO.