Business loans issued by Georgian commercial banks for SMEs (both for legal entities and households) in national and foreign currencies amounted to GEL 8, 736, 837, 000 in June 2022, up from GEL 8, 705, 327, 000 of May 2022, accoridng to official data of the National Bank of Georgia.
The monthly comparison illustrates credit portfolio growth by GEL 31,510,000.
While comparing SME loans by legal entities and households, as the data shows banks are more prone to financing households with credits denominated in national currency rather than in foreign currency. I.e. commercial banks loans for SMEs households in national currency amounted to GEL 2,749,971,000 while in foreign currency the figure was GEL 1,217,541,000.
As for legal entities the banks issued GEL 1,976,049,000 in national currency and GEL 2,793,277, 000 in foreign currencies.
Pursuant to NBG, annual market interest rate for legal entities borrowing in national currency reached 13.8% in June down from 13.9% in May and 18.8% up from prior 18.4% for individuals.
Similar to national currency, interest rates went up for foreign currency borrowers. The rate was 7.1% from previous 7% for legal entities and 6.4% from 6.3% for individuals.
