The share of non-performing loans in mortgage loans is down, - according to the report issued by the National Bank of Georgia (NBG).
As of 4Q21, the share of non-performing mortgage loans in the national currency amounted to 3%, while the figure stood at 5% in 3Q21. As for the mortgage loans in USD, non-performing loan share totaled to 4% in 4Q21, whereas the figure made up 6% in 3Q21.
"In 4Q2021, compared to the previous quarter, the share of non-performing loans issued on the private individuals decreased slightly. In particular, based on the data available to the National Bank, the share of non-performing loans in mortgages and consumer loans has slightly decreased, which is significantly due to portfolio growth and improved household economic conditions.
In terms of currencies, the share of non-performing loans in foreign currency mortgages has significantly decreased. Namely, the share of non-performing loans in mortgage loans denominated in Euro fell by 2.7 pp to 4%. The share of non-performing loans in USD-denominated mortgages fell by 2.0 pp to 4%. As for mortgages issued in national currency, the share of non-performing loans decreased slightly to 2%. Representatives of the banking sector expect a slight decrease in the share of non-performing loans in both mortgages and consumer loans in the next quarter. At the same time, 3% of the loan portfolio issued to individuals at this time enjoys a grace period for loan servicing.
In addition, it is important to note that in 4Q2021, the share of restructured loans to individuals decreased by 0.3 pp, to 8.5% compared to the 3Q. This figure is down 1.7 pp from the fourth quarter of 2020," the National Bank said in a report.
