Georgia's banking sector reduced lending to the hotel and tourism industry in the first half of 2026, while overdue loans continued to rise, according to financial data submitted to the National Bank of Georgia.
Although total business lending increased by 12% year-on-year to GEL 48 billion, outstanding loans to the hotel and tourism sector fell by 13% to GEL 2.85 billion by the end of June, a decline of GEL 414 million compared to the same period last year. The figures suggest banks are issuing fewer new loans while existing credit portfolios continue to shrink.
At the same time, the volume of non-performing loans in the sector increased to GEL 135 million, up from GEL 97 million a year earlier. As a result, the share of loans overdue by more than 90 days rose from 3% to 4.7%, highlighting growing financial pressure on hotel businesses.
