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Georgian commercial banks see decline in lending

Business Materials 1 March 2021 18:48 (UTC +04:00)
Georgian commercial banks see decline in lending

BAKU, Azerbaijan, March 1

By Tamilla Mammadova – Trend:

Lending to the economy by Georgian commercial banks decreased by 116.9 million lari ($35.2 million), and the total volume amounted to 37.6 billion lari ($11.3 billion), Trend reports via the National Bank of Georgia.

According to the document, a decrease in lending in both national and foreign currencies affected the reduction of the loan portfolio.

The annual growth rate of the loan portfolio issued by commercial banks amounted to 19.3 percent.

Without the exchange rate effect, the annual growth in loans was 9.2 percent. Some 89.3 percent of the loan portfolio were long-term loans, 89.5 percent of which were in foreign currency. The share of loans in foreign currency in short-term loans amounted to 40.9 percent.

According to the National Bank, during the reporting period, loans in national currency decreased by 117.6 million lari ($35.4 million) to 16.62 billion lari ($5.01 billion). This change is mainly due to the reduction in short-term lending to legal entities.

Loans in foreign currency in January decreased by $39.2 million (0.6 percent) compared to the previous month and amounted to $6.53 billion at the end of the period. Some 61.5 percent of loans in this category are loans to legal entities, and 89.5 percent are long-term loans.

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