The annual growth rate of business loans is 17.48% (01.12.2023 – 17.12%Y.Y). The business portfolio of banks is still highly dollarized. The dollarization rate is 59%, down only 1% since September (09/2024- 60%).According to December figures, a total of 288,000 loans worth 35 billion GEL were issued for business financing, of which 24,840 loans worth 20.6 billion GEL were equivalent in foreign currency.Over the year, the number of foreign currency loans has increased, while GEL issuances to businesses have decreased. Accordingly, there is an increase in foreign currency from 23,265 to 24,840. There is a decrease in GEL from 272,840 to 263,110.

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The deposit portfolio decreased by 100 million GEL to 1.476 billion GEL (2023 – 1.575 billion, -6.3%Y.Y).More than 1/2 of Cartu's deposit portfolio is current accounts, of which more than 80% is in foreign currency. Term deposits also have a high dollarization rate (80%).Cartu Bank serves more legal entities than individuals, although the share of companies in deposits has decreased. It reached 900 million GEL a year ago and has decreased to 750 million GEL. As of 01.01.2025, deposits of legal entities have increased to 800 million GEL (2023 - 675 million).

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The digital bank has violated client identification/verification requirements with 3 companies, as well as in the part of document verification, which is required by the Financial Monitoring Service.The NBG President's Order No. 48/04 on the implementation of preventive measures against clients electronically has been ignored (the client's electronic identification/verification condition has been violated).The details of the transaction, information about the parties, and the client's risk level have not been properly studied. The client identification procedure has been violated.There is an additional violation in relation to 2 clients, regarding improper implementation of enhanced preventive measures. The origin of property and funds has not been studied during monitoring of business relations.In the case of the first client, the requirements of the National Bank of Georgia for assessing the risk of legalization of illegal income and financing of terrorism were violated.In the case of the 2nd client, who falls into the high risk category, is not accompanied by additional permission from the management. The law requires permission to establish or continue a business relationship (Article 18 d).

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According to the updated report of Creditinfo, as of 01.01.2025, there are 1,588,300 active borrowers (01.08.2024 – 1.577 million). The balance on loans has increased to 45.8 billion GEL (01.08.2024 – 43 billion).As you know, Creditinfo only records loans up to 10 million GEL. The limit was increased at the end of 2022 (previously it included loans of 3 million).As of 01.01.2025, 140,260 loans from 82,365 borrowers were overdue for up to 3 years from the bank's issued credits, with a total balance of 1.405 billion GEL.As of August of this year, there were almost 10,000 more problem borrowers (01.08.20124 - 91,500 borrowers, 153,600 loans). The volume is almost unchanged at 1.4 billion.According to Creditinfo, by the end of 2024, a total of 50.3 billion GEL of active loan contracts (banks, MFOs, Pawnshops, leasing companies) had been signed. Including the portfolio of leasing companies is within 0.6 billion GEL.Between September and December, the share of leasing companies and loan issuing entities increased, while that of banks decreased, to 81.7% (01.08.2024 – 91.3%).

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The NBG noted that 96% of transfers came from 24 major partner countries, each transferring over $1 million that month. Outbound transfers from Georgia in December 2024 reached $34.8 million, marking a 7.6% increase compared to December 2023.The top source countries for transfers in 2024 were:Total transfers to Georgia in 2024 amounted to $3.36 billion. While overall transfers decreased compared to the previous year, EU countries emerged as the primary source of transfers, showing 10.2% annual growth.

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The Acting Governor of the National Bank of Georgia presented the stable macroeconomic situation and investment environment in Georgia to both current and potential investors in the country.During the meeting, Natia Turnava highlighted the country's progress in strengthening macroeconomic and financial stability, as well as the successful policy of reducing dollarization, which is a key factor in ensuring price stability and developing the financial sector.“More than 25 institutional investors, funds, and various investment groups participated in this meeting, which indicates high interest in Georgia and confirms that our country remains a highly attractive destination for investors," - stated Natia Turnava, Acting Governor of the National Bank of Georgia.The Deputy Minister of Finance of Georgia, Ekaterine Guntsadze, also participated in the meeting with investors.

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As of the document, half of this loan (100 million) will be allocated to climate finance projects, a quarter to MSMEs, and another quarter to women-led MSMEs.Artak Hanesyan, Ameriabank’s CEO, commented:“This long-term loan agreement stands out as the largest of its kind ever signed between IFC and a financial institution in Armenia. Beyond its scale, the agreement is significant for its purpose: supporting business initiatives and services that address climate change challenges, empowering women entrepreneurs, and contributing to a sustainable future for Armenia. We deeply appreciate IFC’s decade-long partnership and our shared commitment to creating opportunities for businesses and people in Armenia.”Marcelo Castellanos, IFC’s Senior Regional Manager for the Financial Institutions Group in Europe, commented:“This partnership is part of IFC’s strategy to boost private investment in sustainable development. Ameriabank, a leader in climate financing, is a strategic partner in advancing these goals. By providing long-term funding, we aim to demonstrate the viability of climate finance products and inspire replication and scale across Armenia’s financialsector.”Archil Gachechiladze, Bank of Georgia Group PLC’s CEO, commented:“This transaction is another step towards facilitating sustainable development and supporting the high-growth Armenian economy. Ameriabank is a leading franchise in the country and it will continue to empower businesses and drive positive impact for local communities. I would like to thank the IFC and Ameriabank teams for their successful collaboration.”The Bank of Georgia Group acquired Ameriabank, one of Armenia's leading financial institutions, in 2024.

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As you know, Creditinfo only records loans up to 10 million GEL. The limit was increased at the end of 2022 (previously it included loans of 3 million).As of 01.01.2025, 140,260 loans from 82,365 borrowers were overdue for up to 3 years from the bank's issued credits, with a total balance of 1.405 billion GEL.As of August of this year, there were almost 10,000 more problem borrowers (01.08.20124 - 91,500 borrowers, 153,600 loans). The volume is almost unchanged at 1.4 billion.According to Creditinfo, by the end of 2024, a total of 50.3 billion GEL of active loan contracts (banks, MFOs, pawn shops and leasing companies) had been signed. The portfolio of leasing companies is within 0.6 billion GEL.In September-December, the share of leasing companies and loan issuing entities increased, while that of banks decreased, to 81.7% (01.08.2024 – 91.3%).

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MFO Capital Express has been placed in liquidation. In order to ensure timely and smooth settlement of obligations, creditors must submit documentation to the company's liquidator within 30 days.The liquidator is Roin Tsatsiashvili (Roin.Tsatsiashvili@nbg.gov.ge). In case of failure to comply with this condition, creditors' claims will not be accepted.In 2024, 3 entities left the MFO market, including FinCredit (cancelled) and MBC (became a bank).31 MFOs remain on the market.

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Bank of Georgia Group (BGEO LN) shares closed at GBP 45.00/share (- 3.23% w/w and -0.66% m/m). More than 288k shares traded in the range of GBP 44.75 – 48.00/share. Average daily traded volume was 56k in the last 4 weeks. The volume of BGEO shares traded was at 0.65% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 30.25/share (- 2.73% w/w and -2.42% m/m). More than 198k shares changed hands in the range of GBP 29.80 - 31.50/share. Average daily traded volume was 54k in the last 4 weeks. The volume of TBCG shares traded was at 0.35% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 11.46/share (-7.73% w/w and +1.78% m/m). More than 256k shares traded in the range of GBP 11.46 - 12.60/share. Average daily traded volume was 62k in the last 4 weeks. The volume of CGEO shares traded was at 0.65% of its capitalization.

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