The National Bank of Georgia (NBG) has announced that, starting August 1, 2025, the cap on unhedged foreign currency loans will rise from GEL 500,000 to GEL 750,000. This change means citizens earning in GEL will no longer be able to access loans exceeding GEL 750,000 in any foreign currency.
According to the Banking Association of Georgia, the impact of this change will affect a much smaller segment of borrowers.
Aleksandre Dzneladze, President of the Banking Association, emphasized that the decision will primarily affect medium-sized companies and mortgage loan applicants.
“The most significant shift occurred when the foreign currency lending limit was raised to GEL 200,000, that impacted the widest group of borrowers,” Dzneladze told BMG. “By contrast, increasing the cap from GEL 500,000 to GEL 750,000 will affect only a small number of current and potential borrowers.”
Dzneladze explained that the National Bank of Georgia has long planned to raise the threshold to GEL 1 million gradually, and this current step aligns with that strategy. He also noted that the pace of larization has recently slowed, which likely prompted the regulatory move.
“While technically it might still pose challenges, we can say with confidence that this is one of the least painful decisions in the series of larization measures,” Dzneladze said. “Medium-sized companies might feel a greater impact, as will the mortgage loan segment, where larger loan amounts are now more likely to fall under larization requirements. Still, in terms of overall borrower numbers, the effect will be minimal,” - Dzneladze said.
