To strengthen the competitive environment and enhance the standard of consumer rights protection, changes are being introduced to the “Regulation on the Protection of Consumer Rights in the Provision of Services by Financial Organizations.” Financial organizations will be required to comply with these changes starting May 1 of this year.

According to the amendments, in the case of full or partial refinancing of a loan/credit from another financial organization, for individuals and legal entities whose total liabilities do not exceed two million GEL, the maximum advance fee will be reduced from 2% to 0.5%.

As a result, the cost of transferring liabilities between financial organizations will decrease, promoting stronger competition and enabling better conditions for consumers.

For the first time, the amendments introduce an upper limit on prepayment fees for documentary transactions such as: Letter of credit, Documentary collection, Bank guarantee, Acceptances, etc. This cap is set at 2%, addressing an unregulated area where higher fees have been charged in practice. The National Bank of Georgia deemed it necessary to implement these changes to ensure better consumer protection.

We would like to remind you that the protection of consumer and investor rights and the promotion of competition in the financial sector remain significant priorities of the National Bank of Georgia. These amendments will further strengthen the competitive environment, which is a crucial factor in ensuring consumer rights.

The National Bank of Georgia will continue working to enhance mechanisms that foster competition and safeguard consumer rights.