The Banking Association of Georgia expects an interest rate decrease on GEL loans this year.
As Aleksandre Dzneladze, the president of the Association told BMG, the National Bank will further reduce the refinancing rate late this year due to the slowing down of the inflation rate. As of him, refinancing rate reduction will make loans in national currency cheaper.
He said interest rates on newly issued GEL loans will reduce by 1-2 percentage points y-o-y.
"In 2023, the National Bank started softening the monetary policy, and at the very first session of 2024, the interest rate was reduced by an additional 0.5 percentage points to 9%. We expect that by the end of the year, the refinancing rate will further decrease, directly making the variable rate loans issued in GEL cheaper. As for the new offers, we think that from the beginning of the year onwards, there will be a reduction of 1-2 percentage points in this direction," said Aleksandre Dzneladze.
In addition, the Banking Association assumes that rates will not decrease in foreign currency loans in the coming months.
