Opposition politician Roman Gotsiridze has criticized upcoming restrictions on foreign currency loans, arguing that the policy will place an unnecessary burden on businesses and individuals.
Speaking about the changes set to take effect on January 1, Gotsiridze highlighted the challenges faced by importers and businesspeople who rely on dollar-denominated loans for operations.
He noted that borrowers will now be forced to take loans in GEL for amounts below the equivalent of 500,000 GEL, incurring higher interest rates and conversion fees.
“Importers and businessmen cannot borrow below 500,000 GEL in dollars. They are forced to take loans in GEL, convert them, and lose money on commissions in the process,” Gotsiridze said. He added that loans in GEL are typically offered at much higher interest rates than those in dollars, further increasing costs.
Gotsiridze linked the policy to the National Bank’s push to enforce the so-called “larization [GEL] coefficient,” which promotes lending in the local currency. He accused the authorities of making life unnecessarily difficult for citizens and businesses.
“The decision should be left to borrowers—whether they want a loan in GEL or dollars. Loans in dollars are cheaper, and borrowers should have the right to calculate their best options themselves,” Gotsiridze said.
Under the new regulations announced by the National Bank of Georgia, individuals with income denominated in GEL will be prohibited from borrowing in foreign currencies for loans under the 500,000 GEL threshold. The policy is part of broader efforts to promote financial stability by reducing exposure to currency risks.
