Bank of Georgia offers mortgage and auto loans in the national currency. Reportedly, as of December 31, 2008, the portfolio of auto loans totaled GEL80m. The dynamic of interest rates on auto loans before May 2008 was 16% and in May 2008 – 17%. In November 2009 the rate decreased to 16%. Bank officials said that such kinds of loans would help consumers who have salaries in GEL to stay away from the risks caused by currency rate change.
Sophie Balavadze, PR of corporate communications at Bank of Georgia, said: “Taking in to account the interest of our customers, in 2008 Bank of Georgia offered mortgage loans in GEL. The product that we offered to the customers two years ago was different. At the moment we offer our consumers fixed interest rates and loans for 10 year terms.
“The first 100 applicants will get loans with a 15% interest rate. The customers who apply for a Bank of Georgia auto loan until March 1 will be able to get a 16% interest rate loan for five years.
“The Bank decreased interest rates on micro, mortgage, auto and consumer loans and the rates of each of them became equal to the period before the economic crisis. We also decreased interest rates on corporate loans.”
Mr Gilauri said: “These kinds of loans are available for purchasing real estate, building or funding renovation. We already have a banking license in Ukraine and Belorussia. As for Tel-Aviv, we manage an office which is mostly focused on the marketing activity of our products. In a certain European country, which we cannot yet name, we will open a branch of the same kind.”
