MFOs Reduced Financing of Trade

Microfinance organizations of Georgia issued loans amounting to GEL 661 million in 6 months of  2014, which is 18.2% more than in the same period of 2013.

In the same period, commercial banks issued loans in the national currency in the amount of GEL 341.2 million, which is 2 times higher than in the same period of 2013, in foreign currency –  GEL 336 million, which is 39% less than in same period of 2013.

Thus, the amount of loans issued by the microfinance sector in this period is  2.5% less than by  the banking sector.

Loans issued by MFOs to sectors were as follows –  consumer loans – 45, 3% (GEL 299, 1 million,growth by  53, 8%), agriculture – 23, 4% (154, 5 million GEL), growth of 0, 7%, trade – 20, 5% (135, 6million GEL) – a decline of 8.1%.

At the same time the structure of loans granted by commercial banks in national currency looks like this – financial intermediation – 36, 3% (123, 9 million GEL), an increase in 684 times, trade – 35, 5% (121 million), a 65, 3% growth, industry – 9, 7% (GEL 33.1 million) – a decline of 22, 7%.

Trading leads by loans received  in foreign currency – 55. 5% (GEL  186. 5 million), down by 36.5%, industry – 16, 2% (54, 4 million), down by 63,9%, and construction – 9, 2% (30, 8 million GEL), down by2%.