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Commercial Banks Issued 240 million GEL Loans in May

In May 2018 volume of GEL-denominated loans in commercial banks rose by 157 million GEL (without interbank loans), while foreign currency denominated loans increased by 18 million USD.

As a result of GEL exchange rate devaluation, the volume of foreign currency denominated loans rose by 92 million in GEL equivalent. As of May 1, 2018, commercial banks have issued 23.1 billion GEL loans, including 10.4 billion GEL-denominated loans.

In May consumers loans issued by commercial banks declined by 59 million GEL, as a result of reduction in GEL-denominated loans after introduction of new banking regulations.

Over the past year, GEL-denominated loans rose by 2.5 billion GEL, while foreign currency denominated loans increased by 445 million USD. Ratio of foreign currency denominated loans in total loans portfolio increased by 54.9%, down from 58.9% year on year.

In May the volume of overdue loans rose by 32 million GEL to 410 million GEL. Ratio of overdue loans in total credit portfolio made up 1.8% and this is low indicator, down from 2.4% as of June 1, 2017.

In May 2018, compared to April 2018, the annual averaged interest rate on GEL-denominated loans rose by 0.1% to 16%, while the rate on foreign currency denominated loans rose by 0.4% to 8.4%.