Tbilisi (GBC) - The growth of microfinance organizations (M/O) lending slowed down to 8% annually. As of 01.01.2024, the total portfolio (total of 34 shares on the market) is 1.7 billion GEL.

Last year, the market was represented by more entities, 36 MFOs with credit investments of 1.574 billion GEL.

More than 1/2 of the portfolio, up to 53%, comes from 2 large MFOs, which operate with a different strategy. Rico is focused on pawnshops, Crystal provides both consumer and business loans, as well as MBC.

This is the main condition that allows MFO to transform into a microbank. At the moment, MBC and Crystal have submitted license applications to the NBG.

After the exit of the mentioned entities from the M/O market, the already small 2.4% share of the credit union in the financial system will further decrease, while the 91.4% share of the banks will increase.

A microbank license seeker and a new player pay the license fee at the same rate – GEL 100,000, a MFO license costs GEL 50,000, a commercial bank license costs GEL 200,000.