Tbilisi (GBC) - The share of foreign currency loans is increasing in the lending. According to the NBG's October analytical tables, as of September (01.09.2024), the share of foreign currency has increased to 6.3% (01.08.2024 – 6.1%; 01.09.2023 -7%).
Despite the NBG’s regulations, the ratio cannot return to the starting 5% in 2023. As you know, the regulator limited foreign currency lending from GEL 200,000 to non-hedged clients. Then the central bank increased the limit twice by 100,000-100,000. If the borrower has income in GEL and his total liabilities are less than 400,000 GEL, the creditor has the right to issue a loan only in GEL.
The 200,000 limit has been in place for years. Turnava's 1st vice-presidency was changed and became available only to hedged clients in foreign currency. This was followed by 300,000 and then 400,000. Accordingly, the annual issuance of foreign currency loans was expected to decrease by $180 million and $150 million.
As of 01.09.2024, the equivalent of 23.8 billion GEL in foreign currency has been issued (at current prices, 8.7 billion USD).
As of 01.09.2023, the portfolio of foreign currency loans of banks amounted to 21.6 billion GEL.
Now the annual (Y.Y) growth of foreign currency lending is 14%, and it falls short of the GEL lending ratio (+22.4% Y.Y) by a whole 8 percentage points.
Last year, the rate of annual growth of foreign currency lending was 14.8%, exceeding that of lari (+14.5% Y.Y).