Vazha Menabde, MSME Director at Liberty Bank explains that setting an effective interest rate of 15% for older borrowers is unrealistic.
Menabde responded to a statement by opposition leader Giorgi Vashadze, who said that the interest rate on a Liberty Bank loan was much higher compared to the consumer loans for other citizens, which ranges from 15% in deferent commercial banks.
“It means that one of the most vulnerable groups in Georgia, is taking the most expensive loan," said Giorgi Vashadze.
"As for the 15% interest rate, whoever says this is an unrealistic percentage. You cannot even cover the expenditures, including the service cost. If other bank issues pension loans, it will not solve the problem as there will be other expenditures, including service fees, card withdrawal fees and opening an account. Our customer gets all these for free. Consequently, what they get today for free, they will have to pay.
We are ready for all scenarios. For both winning the tender and conceding the tender, the competition will regulate everything. Just let those who decide think about the positive and negative results of these changes," Menabde said.
