25.May .2020 17:11

Interest rates of private individuals’ loans have increased

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Interest rates on private individuals’ loans have increased in April 2020, it becomes clear from the report published by the National Bank of Georgia (NBG).

Namely, the average rate of GEL denominated loans increased by 1.8 percentage points to 21.9% compared to March, while the average rate of loans denominated in foreign currency increased by 1.3 percentage points to 6.1%.

The increase of the rate change is even more dramatic y-o-y. In April 2019, the average interest rate on GEL loans was 17.4%, so the increase in credit resources increased by 4.5 percentage points. However, reduction is noted in foreign currency and the rate of private individuals’ loans are declined by 0.8 percentage point.

As for loans to legal entities, their average rate in the national currency in April was 12.1%, which is 0.4 percentage point lower comparing to the previous month. The exchange rate in foreign currency was 6.9%, the change is not fixed comparing to the previous month.