Georgia sees decrease in volume of overdue loans
BAKU, Azerbaijan, Aug. 14
By Tamilla Mammadova – Trend:
The volume of overdue loans in June 2021 decreased by 100 million lari ($32.3 million) to 510 million lari ($164.9 million) compared to the previous month in Georgia, Trend reports via the National Bank of Georgia.
Compared to the same period of last year, it increased by 11 million lari ($3.5 million).
At the beginning of the year, the volume of non-performing loans reached 533 million lari ($172.3 million) that was 1.37 percent of the total loan portfolio. In the same period of last year non-performing loans ratio stood at 1.44 percent.
The National Bank obliges commercial banks to reserve 2 percent of loans that is 1.46 times higher than the current rate for interest on overdue payment.
Despite the economic crisis, the volume of overdue loans increased by only 0.35 percent to 1.48 percent in 2020. Since December 2017, the bad loans ratio has not exceeded 2 percent.
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