28.May .2020 17:34

The government is the guarantor of 20% of mortgage loans

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Today, Georgian government presented a package of assistance to the real estate sector, according to which the government will provide 4% interest rate co-financing to anyone who takes mortgage loan in national currency from June 1, 2020, for a period of 5 years. At the same time, according to the Prime Minister's Adviser Beka Liluashvili, the government will co-finance 20% of the loans.

The terms and conditions of the program are as follows:

● Mortgage loans must be taken - from June 1, 2020 to January 1, 2021;
State co-financing - 4%;

● The state will stop subsidizing if the refinancing rate falls below 5% (renews if it exceeds 5%);
Loan ceiling - 200,000 GEL;

● Co-financing will last for 5 years (since the signing of the contract);

● The state issues guarantees on the mortgage loans, the amount of the guarantee is 20%, i.e. the state is a co-borrower. The guarantee will be extended to loans where the co-payment exceeds 10%.

The budget of the program is 70 million GEL.