BAKU, Azerbaijan, Jan. 26
By Tamilla Mammadova – Trend:
A volume of overdue loans has increased by 6.6 billion lari ($2 billion) in one year and amounted to 38.8 billion lari ($11.7 billion) as of January 1, 2021 in Georgia, Trend reports via the National bank of Georgia (NBG).
Unlike deposits, which overall larization rate is 34 percent, the larization rate of the total loan portfolio reaches 45 percent due to the lending threshold of 200,000 lari ($60,709), below which lending in US dollars and any other foreign currency is prohibited.
A volume of loans denominated in the national currency increased by 2.9 billion lari ($880.2 million) to 17.3 billion lari ($5.2 billion) in one year, while foreign currency loans increased by 17.5 billion lari ($5.3 billion) to 21.5 billion lari ($6.5 billion).
In the reporting period, the volume of overdue loans increased by 46 percent from 365 million lari ($110.7 million) to 533 million lari ($161.7 million). If a year ago the volume of overdue loans made 1.13 percent of the portfolio, now it increased to 1.37 percent.
Despite the increase, the situation can’t be considered alarming. 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.
As of January 1, 2021, the banking sector in Georgia is represented by 15 commercial banks, including 14 - foreign-controlled banks.
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