From July 1, Georgia’s new National Bank regulation came into force, extending restrictions on foreign currency lending to microfinance organizations and other credit providers. Under the updated rules, individuals earning income in lari will no longer be able to take FX-denominated loans of up to 1 million GEL from non-bank lenders, unless they meet strict currency-hedging conditions.
The restriction had already applied to commercial banks since May 6, but is now expanded across the wider lending market. Previously, the threshold for unhedged borrowers was 750,000 GEL; it has now been raised to 1 million GEL, but only under conditions that significantly limit FX exposure.
According to the regulation, foreign currency loans can only be issued if the borrower’s income is fully aligned with the loan currency and is not exposed to exchange rate fluctuations. For businesses, lenders must also ensure that debt service ratios are fully covered in the relevant currency.
The National Bank says the measure is part of a long-term policy to reduce dollarization and strengthen consumer protection. Over the past years, the FX loan threshold has been gradually increased—from 200,000 GEL in 2024 to 1 million GEL as of July 2026—tightening access to foreign currency credit step by step.
