Regulatory Alerts2006-07-18
Law of Georgia on Microfinance Organizations
The National Bank of Georgia regulates microfinance organizations by mandating registration, a minimum paid-in capital of 1,000,000 GEL, and strict suitability criteria for administrators and significant shareholders. The law defines permissible activities such as micro-lending and money remittance while explicitly prohibiting the acceptance of deposits and capping individual micro-credit amounts at 100,000 GEL. Enforcement powers include the imposition of sanctions, fines, and registration cancellation for violations, alongside rigorous requirements for annual auditing, financial transparency, and data confidentiality.
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