27.Oct .2021 14:30

In Which Direction Did Lending Increase This Year? – Bank Of Georgia

In Which Direction Did Lending Increase This Year? – Bank Of Georgia
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In September 2021, the volume of loans issued by Georgian commercial banks reached GEL 41 billion; including the volume of loans in the national currency stood at GEL 19.82 billion, while in foreign currency - GEL 21.19 billion.

The volume of bank loans was up by 13% compared to the same period of the last year. The growth of loans in GEL amounted to 28% and increased from 15.48 billion to 19.82 billion last year. The growth of loans in foreign currency was only 1.4%. Consequently, the increase was mainly observed in GEL loans.

Archil Gachechiladze, General Director of the Bank of Georgia, said that lending to medium-sized businesses and individuals has become especially active this year.

"In 2020, corporate lending and the continuation of ongoing projects were active, including the mortgage incentive program.

This year, medium-sized businesses, consumer loans and microloans are active. In fact, business recovery took place this year, which is a very good sign of economic health. I will repeat once again that economic activation is real, but inflation is the main challenge", said Archil Gachechiladze.

Now, the volume of Georgian bank loans is 72% of the expected GDP this year.