Georgian banks increase lending to economy

Business Materials 29 July 2011 20:12 (UTC +04:00)

Georgia, Tbilisi, July 29 / Trend N.Kirtzkhalia /

The volume of lending by commercial banks (including loans to non-residents) in June, 2011, compared to the previous month, increased by 384.1 million lari (5.9 percent) and reached 6.9 billion lari by July 1, 2011, the Georgian National Bank reported.

The volume of loans provided in the national currency increased by 99.2 million GEL (5.5 percent), while the volume of loans in a foreign currency increased by 284.9 million GEL (6.1 percent).

As of late June 2011, commercial banks issued to resident legal entities 661.9 million lari worth of national currency-denominated loans (4.1 percent or 26.3 million lari more compared to the previous month) and 3.3 billion lari worth of loans in a foreign currency (8.8 percent or 265.5 million lari more, respectively).

Out of the total volume of lending to legal entities, the biggest share falls on trade - 51.6 percent. Compared with the May 2011, in June the volume of loans provided for trade increased by 9.4 percent or 174.9 million lari and exceeded 2.0 billion lari, the report reads.

Share of loans provided to the industrial sector constituted 19.4 percent of all loans to legal entities and amounted to 766.0 million lari by July 1, 2011 (0.9 percent or 6.8 million lari more compared to the previous month). 11.2 percent fall on construction, amounting to 442.0 million lari (12.6 percent or 49.5 million lari more, respectively). Therefore, 82.1 percent of the total volume of lending to the legal entities falls only on three sectors - industry, construction and trade.

The volume of lending to resident individuals increased by 4.6 percent or 116.9 million lari, during the June 2011, and reached 2.7 billion lari by July 1, 2011.