Credit interest rates high in Georgia

The Georgian leadership frequently boasts that Georgia has the best economic environment. However, there are some elements that contradict this sentiment. The most important is the fact that interest rates on lines of credit in Georgian banks are one of the highest in the world, sometimes interest rates are 20% or more. The banks themselves explain this due to the high risks involved. Officially the risk premium indicator in Georgia is more than 14%, in Armenia it is 8.6%. As for the developed countries this indicator is around 1.5 – 4%. These high interest- rates on credit create serious problems for Georgian businesses, many businessmen refrain from taking credit and as a result, business development decreases.