Georgian banks invest over 50 percent of loans in trade

Business Materials 29 January 2011 11:20 (UTC +04:00)

Georgia, Tbilisi, Jan.29 / Trend, N.Kirtskhalia /

The volume of lending by commercial banks (including loans to non-residents) increased by 3.9 percent compared to the previous month and reached 6.3 billion lari by January 1, 2011. The volume of loans provided in the national currency increased by 18.4 million lari (1.1 percent), while the volume of loans in foreign currency increased by 216.6 million lari (4.9 percent), the National Bank of Georgia told Trend.

By the end of December 2010 commercial banks issued to resident legal entities 632 million lari worth of national currency-denominated loans (2.6 percent or 17.0 million lari less compared to previous month) and 3.0 billion lari worth of loans in foreign currency (6.7 percent or 188.3 million lari more, respectively).

The major part of shares of the total volume of lending to legal entities falls on trade - 51.7 percent. Compared to the previous month, in December the volume of loans provided for trade increased by 2.8 percent or 50.7 million lari and reached 1.9 billion lari.

Share of loans provided to the industrial sector constituted 21.5 percent of all loans to legal entities and amounted to 776.2 million lari by January 1, 2011 (17.6 percent or 116.2 million lari increased compared to the previous month). 10.7 percent fall on construction, amounting to 384.5 million lari (1.6 percent or 6.0 million lari increased, respectively). Thus, 83.9 percent of the total volume of lending to the legal entities falls only on three sectors - industry, construction and trade.