Number of non-performing loans decreases in Georgia
Azerbaijan, Baku, April 20 / Trend E. Kosolapova/
Number of non-performing loans decreased in Georgia in the post-recession period, the Georgian National Bank wrote Trend via e-mail.
"The share of non-performing loans (according to the local definition) in total loans decreased from 18.8 percent in June 2009 to 7.9 percent in February 2012," the Bank said.
According to the Bank, the improvements in the asset quality indicators resulted from the economic recovery and intensified lending activity combined with write-offs and repossessions in the post-recession period.
Non-performing loans calculated on a 90 day-overdue basis equals 4.2 percent in Georgia.
According to the National Bank, Georgian banking sector was represented with 17 banks and 2 foreign bank branches as of February 2012. All of the institutions rely on foreign capital participation according to the analysis of beneficiaries. The top 5 banks accounted for 81 percent of total Georgian assets and 81 percent of gross loans as of February 2012.