Pension-backed loan interest limit decreasing across Georgia
By Trend
The upper limit for interest rates on pension-backed loan payments is decreasing across Georgia following a campaign by the Citizens political party, Trend reports with reference to Agenda.
The party revealed on Tuesday the Social Service Agency and Liberty Bank - the entities facilitating pension-backed loans - were adjusting the upper limit of the rates at 25.8 percent, a significant decrease from previous rates.
In its announcement, the party said the change meant the Bank would no longer be issuing loans at the previously used “punishing” limits of “43 or 36 percent” to its pension-age customers.
The party’s campaign was followed by the Prime Minister’s decree on establishing an interdepartmental commission tasked with studying the pensions system, identifying gaps and analysing the data, the announcement also said.
The commission’s work resulted in the development of new conditions for the upper interest rate limits, and led to the approval of the rates that will not “further worsen [material] conditions of pensioners”, the release added.
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