(Source: Info-Prod Research (Middle East))According to Georgia Today: The Bank of Georgia announced decreases to loan and deposit interest rates starting from Nov. 16. General Director Irakli Gilauri released the bank's third quarter results at a press conference today. According to Gilauri, interest rates on mortgage loans will be decreased by 14.5 percent, and consumer loans will start with a 20-percent interest rate, and automobile loans with a 16-percent interest rate. "We are also improving the conditions on mortgage loans for evaluating guarantees because we were not waiting for real estate price reductions," Gilauri told Georgia Today. The bank also announced decreased interest rates on deposists from 1 to 0.75 percent. "Client deposits will significantly increase, as well as demands on loans," he added. "We believe this is a positive signal for the market and points out the economic situation. The Bank of Georgia has a redundant liquidity of 360 million lari, which we want to use to consume crediting." Gilauri stressed that the bank's credit portfolio increased to 22 million lari in October. The bank's administration claims that the new rates will further increase its budget. The bank already reduced interest rates one month ago.

Originally published by Info-Prod Strategic Business Information.

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