BAKU, Azerbaijan, Sept. 25
By Tamilla Mammadova – Trend:
The volume of deposits in Georgia was increased by 21 percent by the end of July of 2020, compared to the corresponding period of 2019 and amounted to 31.4 billion lari ($9.6 billion), Trend reports via the Policy and Management Consulting Group (PMCG) International development company.
By this period deposits denominated in foreign currency was increased by 16 percent, while deposits denominated in local currency were increased by 29 percent. The significant increase was recorded by the end of March of 2020 when the volume of deposits was 24 percent higher than in March of 2019. By this period deposits denominated in foreign currency was increased by 32 percent, while deposits denominated in national currency were increased by 10 percent.
In the period from January of 2017 to July of 2020 interest rates on deposits denominated in national currency were characterized with more volatility than deposits denominated in foreign currency. In July of 2020 interest rates on deposits denominated in national currency were 1.2 percentage points higher, compared to the corresponding period of 2019, and reached 8.7 percent, while interest rates on loans denominated in foreign currency were 0.4 percentage points lower and dropped to 2.5 percent.
According to data for July of 2020, the difference between interest rates on deposits denominated in foreign and national currencies amounted to 6.2 percentage points, which is 1.7 percentage points higher than in the corresponding period of 2019. Moreover, the average interest rate on deposits denominated in national currency in January-July of 2020 was 9.8 percent, while the average interest rate on deposits denominated in foreign currency was equal to 2.6 percent. In comparison, in January-July of 2019, the figures were 7.4 percent and 2.9 percent, respectively.
In the period of January-July of 2020, the structure of loans by economic activity changed moderately compared to January-July of 2019.
Trade had the highest share of loans in January-July of 2020 of 29.5 percent, which is 4.2 percentage points higher than in the corresponding period of 2019.
The industry had the second-highest share of loans in January-July of 2020 of 25.9 percent, and it is worth noting that its share decreased by 0.4 percentage points compared to the corresponding period of 2019.
Construction in January-July of 2020 increased by 3.6 percentage points, compared to the corresponding period of 2019, and reached 14.2 percent. Financial Intermediation loans, on the other hand, decreased by 8.2 percentage points, reaching 7.5 percent.
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