18.Jan .2021 14:07

Micro-finance Sector outperformed Banks - MFO

Micro-finance Sector outperformed Banks - MFO
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Gia Petriashvili, director of MFO MBC told BM.GE, that the number of microfinance organizations will be halved and the pandemic accelerates the process further.

Petriashvili considers, that the number of overdue loans increased due to the pandemic, but the market regulation rules should not be eased despite the current situation.

"If we take into account that a total of 16 banks operate on the Georgian market, we must mean that 40 microfinance organizations are a very large number. I expect this number will halve. The pandemic caused the greatest difficulties in the country and the financial sector was not an exception”, Petriashvili declares.

However, director of MFO MBC notes, that MFOs are more resilient comparing to other industries, as MFOs portfolio is diversified.

“We issue very small loans. If you look at the financial results, the microfinance sector shows better results than the banking sector. But, our current results are worse comparing to the previous years," said Petriashvili.