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Microfinance Market Received 9 Mln in Revenue in 2014 from Buying and Selling Foreign Currency

Microfinance organizations (MFOs) received GEL 8.9 million in revenue  in the fourth quarter of 2014 from buying and selling  foreign currency   that is  2.2 –fold  more compared with 2013.

 Lasha Nikolaishvili,  “Rico credit” founder,  said in late February that due to the lari’s  depreciation , the  financial institutions received  the colossal revenues.

In his words, “Rico Credit” saw 5 –million profit in one month due to the lari’s  depreciation – but this happened  at the expense of the impoverishment of the people.

As for other financial indicators, the organizations’ net profit in 2014 increased by 28.5% and amounted to GEL 79.6 million.

During the reporting period, the total assets of MFOs  amounted to  GEL 1.1 billion, which is 36.4% increased, while liabilities increased  37.3%  and amounted to 836.4 million.

MFIs’ lending increased by 37% and  totaled 852 million. While consumer loans account for  the largest share (GEL 427.9 million) of the total  lending, which is 55% (152 million) more in one year.

It should be noted that the microfinance institutions’ net loans increased 36.9% and amounted to 841.4 million.

Net interest income increased by 26.6% and amounted to 166.5 million in the reporting period.

In total 70 microfinance organizations functioned in the country by the end of  2014 which employ a total of 4 101 people and own 294 service centers and branches.