BAKU, Azerbaijan, Jan. 27
By Tamilla Mammadova – Trend:
The total volume of bank loans reached $38.8 billion as of January 1, 2021, of which 64.8 percent are real estate secured loans worth 25.1 billion lari ($7.6 billion), Trend reports via the National bank of Georgia (NBG).
The volume of loans secured with real estate increased by 6 billion lari ($1.6 billion) in one year. If the larization rate in total loans made 45 percent at the expense of consumer loans, in real estate loans it decreased to 33.6 percent.
Most real estate loans denominated both in the national and foreign currency have a maturity of more than 1 year, 94 percent and 94.5 percent respectively.
Some 67 percent of secured loans in lari accounted for individuals and the loans denominated in the foreign currency - 43 percent due to the lending threshold of 200,000 lari ($60,712), below which lending in dollars and any of her foreign currency is prohibited.
This amount makes $61,000 or 49,000 euros at the current exchange rate.
A secured loan tends to have lower interest rates than a consumer loan. In the lari it is equal to 12 percent, of which 8 percent is the refinancing rate, individuals have to pay an average of 11.8 percent for long-term loans, legal entities 12.4 percent.
The interest rate for a loan denominated in the foreign currency stands at 6.7 percent, 6.3 percent, for individuals and 7 percent for legal entities.
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