| TBC Bank Reduced Auto Loans to 15% in Chains of Hyundai Georgia |
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05/10/2009 11:11 (858 Day 14:02 minutes ago) | |||||
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The FINANCIAL -- TBC Bank , one of the leading Georgian banks, together with Huyndai Auto Georgia has reduced auto loans from 18 to 15%. Vakhtang Butskhrikidze, General Director of TBC Bank , says that the Bank will continue the reduction of interest rates on different types of loans monthly.
“After the beginning of the economical downturn we reduced interest rates on loans for the first time. We are focused on increasing the launch of credits as recently we have been seeing positive aspects in the economy,” Butskhrikidze told The FINANCIAL.
“Shortened interest rates on different types of loans will increase fiscal circulation which will positively affect the economy. The minimum interest rates on auto loans was 18%. I think our new initiative will be followed by other banks as well,” he says.
“In the case of Hyundai, credit risks will not be reinsured and it will be totally up to our management,” Butskhrikidze mentions.
TBC bank has launched a credit line of USD 10 million for the rehabilitation of Old Tbilisi , a project initiated by the Georgian Government.
“We will finance three projects that are currently under construction but will be finished soon. We have already met with the representatives of the development companies and after finishing some juridical processes, the companies will receive money,” Butskhrikidze notes.
Butskhrikidze notes that presently they are observing global tendencies of reduction of prc for deposits. “I think that all of the banks will start working in this case,” he says.
After the beginning of the August war in Georgia, which was followed by a global recession, the number of sales of Hyundai Auto Georgia slumped by 75-80%.
Presently Hyundai Auto Georgia is selling about 30 cars monthly, while before August 2008’s events the number was 160.
“It will take us about three or four years to return to the pre war situation,” says David Giorgobiani, President of Hyundai Auto Georgia.
“Recently we ave been seeing some activities on the economical market and this has encouraged us to offer a new initiative with TBC Bank . Auto sales are not devided according to the season, we get similar results monthly,” Giorgobiani mentions.
Hyundai Auto welcomes the restoration of the giving out of customer loans by banks. “It is hard to imagine business development without banks’ support,” Giorgobiani says.
During the active period of sales of Hyundai Auto Georgia, about 65-70% of total sales was occupied by auto loans. “This year the figures reached 30%. We think that the new campaign of TBC Bank will increase this figures to 50%,” he notes.
Hyundai is cooperating with other Georgian banks: Bank Republic, Bank of Georgia and Tao Private Bank.
Giorgobiani declares that the recently restricted processes of giving out loans will minimize the risk factors from creditors.
“Restoration of the banking sector’s interest in the auto industry means that this sector has overcome the crisis and restored itself to its pre-recession activities,” Giorgobiani notes.
The most popular brand of Hyundai Auto Georgia is Hyundai Tuscani. Giorgobiani explains that this is determined by the quality and price of this car.
From 2008 prices in Hyundai Auto Georgia were shortened from 10% to 25%. After the beginning of the August war the company had big reserves of cars and was focused on its sales.
The main challenges for Hyundai Georgia in 2010 will be covering the financial responsibilities towards banks and development of the chain. The company plans to widen its chain, in the regions also. “We do not plan to develop the chain with attracted investments, this will be done only with a beneficial sum,” Giorgobiani notes.
Despite the economical downturn Hyundai Auto Georgia has not reduced expenses on ads. The company is actively working on attracting online customers.
From 2010 Hyundai Auto Georgia will offer its customers hybrid cars. “I think that the latest tendencies of the global auto industry to focus on hybrid cars has a large perspective,” Giorgobiani says.
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Written By Madona Gasanova
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