BAKU, Azerbaijan, April 6. The increase in prices for loans with floating interest rate has been observed in Georgia, Trend reports via Georgia’s “Society and Banks” non-governmental organization.
According to the report, the prices for more than 191,800, loans with floating interest rate in the amount of 8.6 billion Georgian lari ($2.7 billion) have risen since the National Bank of Georgia (NBG) increased the refinancing rate.
Meanwhile, the NBG increased the refinancing rate to 11 percent on March 30, 2022. The previous rate increase occurred in December 2021, when the regulator also raised the rate by 0.5 percent - to 10.5 percent.
Thus, the price increase was recorded for 84,900 consumer loans in the amount of 1.1 billion Georgian lari ($357.1 million), 67,000 mortgage loans in the amount of 2.9 million Georgian lari ($941.5 million), 36,200 business loans in the amount of 4.3 billion Georgian lari ($1.3 billion), 700 car loans in the amount of 17 million Georgian lari ($5.5 million), and other loans in the amount of 89 million Georgian lari ($28.8 million).
“The current decision of the Monetary Policy Committee of the NBG is a continuation of the tightened monetary policy against the current inflationary processes in the economy caused by the combined action of internal and external factors,” the organization said.
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