Microfinance Organizations Lost 51 Million Lari in the First Block of this Year

During the last years, this is the first time, when the sector finished its block with the financial damage.

In the first block of 2019, 61 micro financial organization was operating in Georgia, which is 12 less than recent year's similar index.

In the first block of the year, the damage was presented as 51,170,047 Lari.

The funds of the active Georgian microfinancial organizations are more than 1 milliard, more concretely, 1,360,728,791. The obligations consist of 931,5 million Lari.

Generally, microfinancial organizations have already provisioned a loan with more than 1,1 milliard Lari. Majority of loans are given away to a natural person. 
In the recent year, active microfinancial organizations have made a profit with 31,1 Million Lari, which is 13,4 million less than data analyzed in 2017. In 2017, the income of the microfinancial organizations was 44,5 million Lari, which is the lowest index for the last six years.

The Chairmen of Georgian Microfinance Association, Besik Shengelia states, that current damage is the result of newly elaborated regulations. Shengelia also notes, that nearly every major player on the market has damage. 

"From the last year of spring, a package of regulations came into action, in this year, new package is implemented. The damage of 51 Million is the logical extension of the process.", Shengelia notes.