The Prime Minister of Georgia Giorgi Gakharia presented a real estate support program on May 28. The program includes the issue of mortgage loan subsidies, which means that the government will subsidize the interest on mortgage loans taken by citizens under the following conditions:
- Total mortgage subsidy budget - GEL 70 million;
- Category of loans - mortgage loans taken to buy a newly built apartment;
- Maximum limit of subsidized loan for one citizen - 200 000 GEL. At the same time, all such loans taken by a person will be subsidized if their total amount does not exceed GEL 200,000;
- Loan currency - GEL;
- Interest rate on mortgage loans subsidized by the government - 4%;
- Duration of the subsidy - 5 years from the loan;
- Program validity period - from June 1, 2020 to December 31, 2020.
However, it is noteworthy that the government decides on the subsidy if the refinancing rate is reduced to 5%, and if it is missed again, the subsidy will be renewed.
The government also guarantees mortgage loans on the following terms:
- The government guarantees the loan in the amount of 20% of the loan;
- The guarantee lasts for 5 years after taking the loan;
- The guarantee applies to the loan issued during the period 01/06/2020 - 01/01/2021;
- All borrowers who receive a loan of no more than GEL 200,000 to purchase a newly built apartment will receive a guarantee;
- The guarantee will be extended to loans where the participation is at least 10%.
- Budget - 14 million GEL.
Loans under the program have not yet started by the banks. No other details about the program are known for nowdays. The detailed budget of the program and the agency responsible for it will be clarified after the presentation of the updated 2020 budget and the relevant adoption of the government decree.
