General Director of "TBC Bank", Vakhtang Butskhrikidze, deeply believes that reducing the refinancing rate will encourage economic growth for 2024. According to him, along with the reduction of interest rate on variable loans, de-dollarization will increase and the systemic risk of banks will decline further.
"Cutting the refinancing rate will have several important effects on the economy. On the one hand, interest rate will be reduced for a major part of our population, while on the other, this trend will growth the volume of loans in GEL, which will further reduce banks' systemic risk. The third thing is that it will further encourage the granting of loans to small and medium as well as large businesses and will contribute to the economic growth for 2024," says Butskhrikidze.
According to the decision of the Monetary Policy Committee of the National Bank, the refinancing rate was reduced by 0.75 percentage points to 8.25%. This is the lowest rate of refinancing since February 2021.
