According to Mamuka Bakhtadze, Minister of Finance of Georgia, the submitted legislative amendments will provide for cancellation of the current irresponsible and unfair fine system and all the moneylenders will be forbidden to calculate fines based on total loan amount.
“Very often, in case of overdue payment, fines have been calculated from total and not from residual amount of the loan. By the new regulation, all the moneylenders will be obliged to calculate fines from the residual amount of loan. When somebody gets a loan of 1000 GEL and has already repaid 800 GEL, fine should not be imposed based on 1000 GEL – this is very irresponsible attitude,” – stated Minister Bakhtadze, according to him, the new legislative initiative submitted at the government meeting will be submitted to the Parliament for further consideration.
“We would like to make the amendments effective as soon as possible, desirably as from the 1st of July, since the market needs new game rules,” – said Bakhtadze.
