From July 1, individuals earning income in Georgian lari will no longer be able to take out foreign currency loans below the equivalent of GEL 1 million, according to a new decision by the National Bank of Georgia (NBG).
The Financial Stability Committee has increased the threshold for unhedged foreign currency borrowing from GEL 750,000 to GEL 1,000,000. The change will take effect on July 1, 2026.
The NBG explains that the adjustment aims to reduce borrowers’ exposure to currency risk. Since August 2025, the threshold stood at GEL 750,000, after previously being set at GEL 500,000 from January to August 2025. In earlier years, it was gradually raised from GEL 200,000 to GEL 400,000 in 2024, making the latest decision part of a broader tightening policy.
According to the central bank, Georgia’s financial system remains stable and continues to support lending to the economy. However, it notes that the war in the Middle East has increased global uncertainty, contributing to higher risks in commodity markets, inflation expectations, and financial conditions.
“The Financial Stability and Monetary Policy Committees considered it appropriate to restore the upper limit of temporarily increased reserve requirements on foreign currency liabilities to its previous level and reduce it by 5 percentage points,” the NBG said. It added that it will continue recalibrating the framework depending on macroeconomic conditions and risks.
The regulator also stressed that reducing dollarization risks remains a key priority, and it will continue implementing its long-term de-dollarization strategy in coordination with the banking sector.
