Tbilisi (GBC) - Banks' portfolio increased in May to 64.7 billion GEL. Annual growth is 15.07% (L/Y +19%Y.Y).
Lending to resident legal entities is 29.1 billion GEL. 63.5% - up to 18.5 billion are foreign currency loans, the GEL portfolio is 10.6 billion. The annual growth rate of business loans has decreased to 13.2% (L/m +14.1% Y.Y).
In contrast, retail lending has increased, up to +15.1%, as of 01.06.2025. (L/m- 14.4% Y.Y). The annual growth of consumer loans is still above 20% at +24.3Y.Y (L/m +24.7%Y.Y).
Analysts point to a slowdown in business activity, a decrease in demand and an increase in the cost of loans. Credit resources for the banking sector have become more expensive.
Loan rates have also been affected by several rounds of increases in the limit for foreign currency lending (increasing to 750,000 from August 1). Hedging costs have increased. Practice has shown that the regulation of foreign currency lending is also transferred to lari loans.
According to the statistics of the National Bank of Georgia, the market rate for consumer loans has increased to 16.7% (L/Y – 16.6%). The minimum rate on foreign currency has increased to 7.7% (L/y – 7.4%).
Mortgages have become more expensive, the annual rate is set at 12% (L/Y – 11.78%). In foreign currency, 7.5% remains.
