The Financial Stability Committee of the National Bank of Georgia decided on Wednesday to increase the maximum maturity of unsecured consumer loans to four years.
"Considering that the high growth rate of unsecured consumer loans recorded in 2022 is reduced, and the activity remains at a sustainable level, from November 1 of this year the maximum term limit for this type of loans will again increase from three to four years”, it said.
The Bank said the annual growth of loans, excluding the effect of the exchange rate changes, amounted to 14.6% as of August.
"Over the last two years, the ratio of loans to gross domestic product has been decreasing, which was facilitated by high economic growth and strengthening of the exchange rate”, the body added.
"In the second quarter of 2023, the ratio of loans to gross domestic product will continue to lag behind the long-term trend, however it is expected to approach its long-term trend in 2024 if the current trend of credit activity and economic growth is maintained”, the statement also noted.
The next meeting of the Committee is scheduled for November 29.
