An amendment has been made to the Law on Microfinance Organizations to support small and medium businesses and increase financial accessibility, according to which the maximum limit for micro-loans issued by microfinance organizations has increased from GEL 100,000 to 200,000.
According to the National Bank of Georgia (NBG), the amendments to the law grant the National Bank of Georgia the authority to establish additional requirements for microloans through regulatory acts for microfinance organizations. This will also ensure the protection of the microfinance sector from excessive risks, which will be a prerequisite for their safe operations.
“Microfinance organizations will also have the opportunity to offer new products and services to their customers. Small and medium businesses will be able to attract larger financial resources and expand their activities, which will contribute to economic growth and the creation of new jobs,” the NBG states.
The Parliament of Georgia has already approved the amendments to the Law on Microfinance Organizations in the third reading. The Ministry of Economy and Sustainable Development and the National Bank have authored the bill, while the Government of Georgia serves as the initiator.
