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Georgian National Bank talks on commercial banks' lending to economy

Finance Materials 2 May 2020 11:09 (UTC +04:00)
Georgian National Bank talks on commercial banks' lending to economy

BAKU, Azerbaijan, May 2

By Tamilla Mammadova - Trend:

Lending to the economy by commercial banks of Georgia increased by 3.30 billion lari ($1.03 billion) in March 2020, compared with the previous month, and amounted to 34.49 billion lari ($10.7 billion), Trend reports with reference to National Bank of Georgia (NBG).

In the reporting period, the annual growth rate of the loan portfolio of commercial banks amounted to 31.8 percent. Without the influence of the exchange rate, the annual increase in loans amounted to 16.5 percent.

An increase in the loan portfolio was affected by an increase in loans in national currency, as well as an increase in loans issued in foreign currency, said the National Bank.

Some 88.8 percent of the loan portfolio accounted for long-term loans, of which 60.6 percent were issued in foreign currency. In short-term loans, the share of foreign currency loans amounted to 43.9 percent.

During the reporting period, loans in national currency increased by 116.3 million lari ($36.3 million) and amounted to 14.71 billion lari ($4.6 billion). The volume of loans in foreign currency increased by $89.6 million (1.4 percent) in March compared with the previous month, amounting to $6.32 billion. Some 60.7 percent of loans in this category were loans to legal entities, 89.4 percent - long-term loans.

As reported, the growth of lending in foreign currency is mainly associated with an increase in long-term lending to legal entities.

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