Tbilisi (GBC) - Access to foreign currency loans has been restricted by another 100,000 GEL since January.
“The banking sector is ready for the 3rd round. It is liquid, stably profitable, consistently “feels and is in good shape,” as the National Bank of Georgia claims with each tightening of regulations.
Access to foreign currency loans has been restricted by another 100,000 GEL since January, reaching 500,000 GEL. The restriction took several rounds. It was increased from 200,000, first to 300,000, soon to 400,000, and finally to 500,000.
This step by the regulator will reduce the issuance of foreign currency loans by more than $100 million annually. The previous increase was calculated on a decrease of $150 million, the previous one – on $180 million.
While praising the banks that the sector is in good shape and will cope with the regulations, the NBG appeared as if it was not too strict. It said that it did not use other tools. The countercyclical buffer was left the same – 0.25%. However, as it was announced many times before, this buffer was included in the 4-year schedule and was not subject to revision. The reserve requirement on funds attracted in foreign currency was increased by 5%, until the 0.5 billion limit was implemented, starting from December. It used 2 tools and how many tools does it have?
The NBG is likely to have to go through a 4th round. Foreign currency loans are not yet liquidated. In November, 19,400 new loans were issued in USD (10/2024 - 18,540) and 5,128 units - in Euro (10/2024 - 4,800).