BAKU, Azerbaijan, Sept.1
By Tamilla Mammadova – Trend:
The total assets of the Georgian microfinance institutions (MFI) amounted to 1.5 billion lari ($483.7 million) as of the end of 2Q2021, that is only 2.8 percent of the banking sector’s assets, Trend reports via the National Bank of Georgia.
As reported, 78 percent of assets accounted for loans issued (1.2 billion lari or $387 million), the expected interest income amounts to 27 million lari ($8.7 million).
The volume of cash in the MFO sector makes 82 million lari ($26.4 million), microfinance organizations place 114 million lari ($36.7 million) on bank accounts.
The value of fixed assets is 47 million lari ($15.1 million), property received as payment of debts amounts to 7.8 million lari ($2.5 million).
Some 50 percent of liabilities, namely 763 million lari ($246 million), are borrowed funds.
Five years ago the microfinance sector competed with banks in rapid consumer lending at a very high interest rate, but in 2017 the National Bank tightened regulations for MFOs and complicated rules for granting loans and set limits on the interest rate.
After that, the MFO sector began to decline and for some time operated at a loss, of more than 70 MFOs only 45 are left on the market.
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