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The Banker: Denomination of more Loans in GEL is Useful for Banks as Well

The Banker: Denomination of more Loans in GEL is Useful for Banks as Well

TBC Bank predicts annual yield of mortgage loans in GEL within the range of 9-10%.

While estimation of government’s larization campaign, General Director of TBC Bank declares that denomination of more loans in GEL is useful for banks along the customers. It should be noted, that current structure of the portfolio is depicted in excess dollarization, which is conditioned due to the high dollarization of deposits.

In respond to this campaign, Vakhtang Butskhrikidze expects deposit increase in GEL. He also focuses attention on the essential events in terms of national currency support and notes that stabile and early predictable national currency (GEL) is important for export as well.

Butskhrikidze declares that larization campaign is possible by supply of sums with tranches from foreign exchange reserves of NBG and subsidizing of exchange rate – 20 point by the government. Dollarization ratio is reduced by 5 percentage point in the portfolio.

To note, the banker does not expect tightening of reserve demands on the funds attracted in foreign currency. According to him, active working process is being carried with the government and another meeting will be held in the next week.