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Assets of Microfinance Organizations Hit 1.5 billion GEL

The assets of microfinance organizations made up 1.5 billion GEL at the end of 2017, the National Bank’s report for 2017 announced.

According to the report, as of December 31, 2017, a total of 75 microfinance organizations were registered in Georgia. Net loans by the microfinance sector hit 1.04 billion GEL by the report’s release, up 14% from last year.

The sector’s credit portfolio consists of three key components:

1. trade and services – 249 million GEL (22% of the total portfolio);
2. Agriculture and forestry – 118 million GEL (11%);
3. Consumer loans – 650 million GEL (58%).

The structure of liabilities for microfinance organizations radically changed in 2017. Compared to 2016, the ratio of resources attracted from individuals in total liabilities declined to 36% from 53%, while the number of individual creditors decreased to 2,202 from 4,633.

This is the result of regulations limiting microfinance organizations to attracting monetary resources of more than 100,000 GEL from individuals.

Moreover, the dollarization coefficient in the credit portfolio of microfinance organizations has also considerably decreased, from 54% to 27%.