President of the Banking Association of Georgia, Aleksandre Dzneladze, says he does not see risks in lending to the development sector and notes that regulations in this area are already quite strict. According to him, instead of tightening, some easing of rules could even be considered.
Dzneladze was commenting on the International Monetary Fund’s assessment that rapidly growing lending in certain segments, including real estate development, may pose risks to financial stability and require stricter supervision.
“In fact, the issue is the opposite - regulations for developers are so strict that we may even see some relaxation. I cannot say that the requirements for the construction sector are lenient. Of course, there are periods when the sector becomes more active - for example, after the pandemic, when demand rebounded sharply. As of today, I do not see any immediate risks,” he said.
He added that while IMF recommendations are important, no immediate threat is currently on the agenda. Dznелadze also noted that expectations of a correction in real estate prices last year did not materialize, and such a scenario is not being discussed at this stage.
