Lending to economy by Georgian commercial banks declines
BAKU, Azerbaijan, August 1
By Tamilla Mammadova – Trend:
In June 2020, compared to the previous month, lending to the economy by commercial banks decreased by 376.7 million lari ($121.9 million) in Georgia and amounted to 33.30 billion lari ($10.7 billion), Trend reports via National Bank of Georgia (NBG).
According to the NBG, the annual growth rate of the loan portfolio of commercial banks amounted to 27.3 percent. Without the influence of the exchange rate, the annual growth rate of the loan portfolio amounted to 15.2 percent.
The decrease in the loan portfolio was mainly due to the decrease in foreign currency loans due to the effect of the exchange rate.
Long-term loans accounted for 89.2 percent of the loan portfolio, 60.6 percent of which were in foreign currency. The share of foreign currency loans in short-term loans amounted to 42.2 percent.
According to the National Bank, during the reporting period, loans in national currency increased by 246.9 million lari ($79.9 million) and amounted to 15.06 billion lari ($4.8 billion). Loans in foreign currency increased by $62.6 million (1 percent) in June 2020 compared to the previous month and amounted to $6.41 billion.
Some 60.6 percent of loans accounted for loans to legal entities, and 89.2 percent - long-term loans. The increase in lending in foreign currency is mainly due to long-term lending to legal entities.
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