More than 252,000 borrowers in Georgia will see their monthly loan payments increase after the National Bank raised the refinancing rate to 8.25%, according to data released by the Society and Banks. As of April 1, 2026, a total of 252,029 loans are tied to variable interest rates, the majority of which are linked directly to the refinancing rate.
Of these contracts, 80% are mortgages and consumer loans, 19% are loans issued to small and medium-sized businesses, and 1% are loans issued to large businesses. In total, GEL 19.9 billion worth of loans in the country are tied to variable rates. Mortgage loans denominated in the national currency account for GEL 3.9 billion, consumer loans for GEL 6.2 billion, SME loans for GEL 6.3 billion, and large business loans for GEL 3.4 billion.
Average loan sizes also vary significantly: the average variable-rate mortgage in the national currency stands at GEL 56,276, consumer loans average GEL 43,587, SME loans average GEL 130,138, while large business loans reach GEL 1,541,963.
According to Society and Banks, inflation has risen to its highest level in two years, reaching 5.9% in April. The organization notes that the Middle East conflict has driven up global energy and transportation costs, creating additional inflationary pressure. The central bank’s decision to raise the policy rate by 0.25 percentage points was described as “strict but necessary” to curb price growth. They also warn that if inflation does not ease, further rate hikes cannot be ruled out.
On May 6, the National Bank’s Monetary Policy Committee increased the refinancing rate to 8.25%, marking the first rate hike since May 22, 2024. The bank attributed its decision to growing inflationary risks driven by global instability.
