10.Aug .2022 14:00

Annual Market Interest Rates on Loans in national currency Down in Georgia

Annual Market Interest Rates on Loans in national currency Down in Georgia
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Annual market interest rates on loans, both for national and foreign currencies, in June 2022 has amounted to 12.7% down from 13.3% of May 2022. The reduction has been recorded in the loans denominated in national currency, while foreign currency borrowers are facing interest rates growth.

According to the National Bank of Georgia (NBG), annual market interest rates on loans in national currency has amounted to 16.4% in June 2022, down from 16.8% from May 2022. The more detailed statistic data shows that the relief for lari borrowers has been brought for individuals rather than legal entities. More specifically, interest rates on loans in lari for legal entities from May to June has enhanced from 13.8% to 13.9%. In a meantime, individuals are lucky to pay 0.4% less, more specifically interest rates on loans in national currency for individuals from May to June has been reduced from 18.8% to 18.4%.

Annual market interest rate on loans in foreign currency amounted to 6.9% in June, up from 6.8% of May 2022. Contrary to lari denominated loans the growth in foreign currency has impacted both individuals and legal entities. More precisely, in June 2022 annual market interest rate on loans in foreign currency amounted to 7.1% up from 7% of May and for individuals 6.4% up from 6.3%.

According to the financial reports for the first half of 2022 submitted by commercial banks of Georgia to the regulator, credit portfolio of banks during the first six months of the current year amounted to GEL 43.6 bln. The figure is 12% more in comparison with H1 2021.