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Banking Sector Anticipating Decline in Loan Portfolio Growth

The Society and Banks nongovernmental organization asserts that the loan portfolio growth tendency will be declined in short-term period as a result of new regulations imposed on the sector.

Unlike previous years, the exchange rate has not increased extremely and this will not result in growth in inflation, the organization representatives noted.

“The refinancing rate has not changed and minimum reserve requirement for GEL-denominated resources has decreased to 5% from 7%. This decision makes GEL resources attainable. In the existing situation, refinancing rate will not decline in midterm period”, the NGO representatives said.

The Society and Banks has analyzed loans attached to floating interest rates. As of May 1, 2018, a total of 52 524 loans are attached to floating interest rates. A majority of them are affixed to the refinancing rate.

The National Bank’s monetary committee has maintained the rating rate unchanged at 7.25%. Consequently, interest rate will not change for borrowers. Today, a total of 2 204 billion GEL loans are affixed to floating interest rates.