The legislative amendments regarding the Larization was discussed in the Notary Chamber

The meeting about the legislative amendments regarding the Larization was held in the Notary Chamber of Georgia. The representatives of the Notary Chamber, the Ministry of Finance of Georgia and National Bank reviewed the new regulations. The parties discussed the part of legislative amendments that referred to the notary transactions.

 According to the amendments, the Notary has to pay special attention to the interest rate, commission, penalty and any form of financial sanctions in the regulatory provisions in the Mortgage Agreement. In particular, the amount does not exceed annual 150 percent of the principal amount of the loan balance. In determining the effective interest rate, the annual effective interest rate for a loan should not exceed 100 per cent. The new regulation also restricted the loan issuance in foreign currency that is less than 100 000 (one hundred thousand) Gel. Natural persons may be granted the loan up to 100 000 GEL only in Gel. A new Article added to the Civil Code, which regulates the attraction of minimum amounts from more than 20 natural persons by the entrepreneur or interconnected entrepreneurs group - no less than 100 000 (one hundred thousand) GEL. In addition, the marginal amount of interest rates does not apply to commercial banks, microfinance institutions, non-bank depository institutions - credit unions and qualified credit institutions.