BAKU, Azerbaijan, Dec.3
By Tamilla Mammadova – Trend:
Bank loan growth pace to slow down in December in Georgia, said Eva Bochorishvili, head of the Galt & Taggart Research Department, Trend reports via Georgian media.
Bochorishvili noted that the annual growth of lari loans was accelerated in October.
"The volume of loans issued by commercial banks 11.4 percent up year-on-year in October 2020, while month-on-month the growth amounted to 0.9 percent and totaled 36.4 billion lari ($11.02 billion). According to currencies, the annual growth of lari loans accelerated to 16.5 percent in October, while the annual growth rate of loans in foreign currency slowed to 7.3 percent (excluding the exchange rate effect), following the average annual growth of 10 percent in August-September," she said.
According to her, the growth pace of corporate lending has slowed down year-on-year, as well as m-o-m in September. Retail loans maintain a growing pace, which is highly impacted by the mortgage subsidy program. The volume of mortgage is significantly increased in October. The increase amounts to 76 percent year-on-year, while 14.1 percent month-on-month.
However, the volume of deposits in the banking sector is slowed down in October 2020 and the annual growth has made up 15.8 percent, while a decrease of 0.8 percent is fixed compared to the previous month.
"At the same time, the growth pace of both lari and foreign currency deposits was slowed down. At the same time, dollarization of deposits in October amounted to 62.2 percent," Bochorishvili noted.
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