Starting from May 1, 2024, the minimum amount for foreign currency credit available to customers with income in Georgian Lari (GEL) will increase to GEL 400,000. The Financial Stability Committee of the National Bank of Georgia (NBG) made this decision.
This decision follows the previous increase in foreign currency lending limit from GEL 200,000 to 300,000 in January 2024. The limit will be increased by an additional GEL 100,000 in May.
The National Bank highlights that raising the limit aims to promote lending in the national currency, thus reducing currency risks for borrowers. This adjustment is part of a long-term de-dollarization plan and is facilitated by the favourable macroeconomic and macro-financial environment.
The gradual reduction of the refinancing rate due to decreased inflation will make GEL loans more attractive for individuals and businesses. It will contribute positively to credit activity. Additionally, stable growth in GEL funding and sufficient liquidity in banks will support smooth lending in the local currency.
The National Bank has also announced that the next session of the Financial Stability Committee will take place on May 29, 2024.
