David Utiashvili Responds to Giorgi Khishtovani: Georgia Has One of the Region’s Highest Loan-to-GDP Ratios
David Utiashvili, Head of the Financial Stability Department at the National Bank of Georgia, responded to economist Giorgi Khishtovani’s Facebook post regarding his interpretation of credit activity in the economy. Below is Utiashvili’s full comment, presented unedited:
The post concerns an important issue for us, and I will answer you here, in case the media misinterprets it.
Relying on the dynamics of 'flows' when assessing credit trends is often misleading. A significant portion of newly issued loans goes toward refinancing existing debt, and without adjusting for this, we get an inaccurate picture of how much credit is actually reaching the real economy.
Therefore, it is standard to observe the growth of the loan portfolio balance directly. As of April, the annual growth rate of loans stood at 15.5%. A similar picture emerges when annualizing the growth rate for the first four months of 2025.
This figure is lower than the 18% recorded during the same period last year; however, as economic growth normalizes, a moderation in loan growth is also expected. Notably, Georgia has one of the highest loan-to-GDP ratios in the region. Under these conditions, an additional annual loan growth rate of 15.5% can be considered strong and sustainable. That is the message we emphasize in our public communications and official releases.”
For context, earlier today, economist Giorgi Khishtovani noted on social media that lending trends in the country are worth monitoring closely in the coming period.
