On December 20, 2023, the Monetary Policy Committee of the National Bank of Georgia (NBG) decided to reduce the monetary policy rate (refinancing rate) by 0.5 percentage points. The Monetary Policy Rate stands at 9.5%.
"As of November 1, 2023, 186,416 loans tied to a variable interest rate have been issued, and the vast majority of them are tied to the refinancing rate, so their monthly rate on the loan will be reduced.
The majority out of 186,416 contracts, are loans issued to households (96%). In total, loans of GEL 11.9 billion were issued at variable interest rates. GEL 6.8 billion (58%) were issued to households, and GEL 5.1 billion (42%) to legal entities.
Today, the volume of business loans amounts to GEL 6.1 billion. The total amount of mortgage loans amount to GEL 3.7 billion, and GEL 2.1 billion - consumer loans. The largest increase was recorded in consumer loans y-o-y (+34%, November 1, 2011), while the volume of business loans and mortgage loans increased by 10% and 14%, respectively, for the same period. The average amount of business loan is GEL 188,445, mortgage - GEL 51,323 and consumer loan - GEL 25,940.
The volume of loans issued in national currency increased by 15% y-o-y and exceeded GEL 27 billion as of November 2023. This is significantly lower than the average growth rate of 25% for 2016-2022. Loans linked to a variable interest rate make up 43% of the total loans issued in national currency", - the document reads.
