Natia Turnava, President of the National Bank of Georgia (NBG), says the central bank is working to provide development companies that have nearly completed construction projects with greater access to bank loans. Speaking about upcoming changes to lending rules, Turnava emphasized that the NBG is coordinating with development companies and the Banking Association to update regulations adopted years ago.
“We appreciate that the development market is growing steadily. The acceleration is related to the flexibility of our regulations and economic growth. We are working with the banking sector and developers to update the existing rules, make them more specific, and focus on ensuring that those who have almost completed their projects have greater access to financing,” Turnava explained. She stressed that the approach is not a concession but a measure to strengthen financial stability in the sector.
The NBG noted that widening access to bank lending will reduce the sector’s dependence on internal installment schemes, a non-bank financing method that carries potential financial risks. Under current rules, companies unable to meet share capital requirements often rely on internal installments to fund projects, limiting their exposure to conventional bank financing.
By improving loan access for nearly completed projects, the central bank expects developers to rely less on internal installments, mitigating associated financial risks while supporting the steady growth of Georgia’s construction sector. Turnava emphasized that the policy aligns with broader economic growth and market stability objectives.
