The National Bank of Georgia says the slowdown in bank lending growth is aligned with the country’s economic normalization. David Utiashvili, Head of the Financial Stability Department, told BMG that an annual loan growth rate of around 13% represents a sustainable and healthy pace for the financial sector.
Bank lending growth has been moderating in recent months. In November, the annual expansion of the commercial banking sector’s credit portfolio stood at 13.7%, down from the 17–18% range recorded at the beginning of the year. According to Utiashvili, part of this slowdown is linked to several large companies issuing bonds on international markets and using the proceeds to refinance their bank loans, temporarily reducing credit demand.
Utiashvili explained that if the effect of these large corporate refinancings is excluded, credit growth would be approximately 13.5%. He emphasized that this trend is fully consistent with the broader economic trajectory. With nominal GDP growth around 10%, he said it is typical for the financial sector in economies like Georgia to grow roughly three percentage points faster than the economy.
Given this structural relationship, Utiashvili considers the current pace of lending expansion both normal and sustainable. He expects credit activity to remain stable in the 12–13% range in the coming period, reflecting continued economic normalization and balanced credit dynamics.
