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Interest Rates on GEL-denominated Loans Rises by 1%

In October 2017, as compared to September 2017, GEL-denominated loans portfolio in the banking sector rose by 153mln GEL, while foreign currency denominated loans shrank by 2mln USD. In both cases, commercial banks have issued 20.7bln GEL loans and this is a record figure.

In October, the annual interest rate on GEL-denominated loans rose by 1% to 21.4%m while the annual interest rate on USD-denominated loans declined by 0.2% to 8.2%.

Over the past year, portfolio of GEL-denominated loans rose by 2.4bln GEL, while foreign currency denominated loans increased by 104mln USD. Ratio of foreign currency denominated loans in total portfolio accounts for 58.3%, down from 63.7% year on year.

Volume of overdue loans rose by 39mln GEL to 454mln GEL and the ratio amounted to 2.2%, down from 2.3% year on year.