BAKU, Azerbaijan, Nov. 16
By Maryana Akhmedova – Trend:
Georgia’s banking association expects reduction of interest rates on loans in Georgian lari from summer 2022, Alexander Dzneladze, the President of the Banking Association of Georgia, said, Trend reports via Georgian media.
“There are preconditions for reducing the interest rate on Georgian lari loans, but this is expected by the end of next year. In addition to the refinancing rate, the price of loans in Georgian lari is also affected by the existing high uncertainty. On the one hand, monetary policy easing is expected from 2022, and, on the other hand, along with the economic recovery, the price of national currency loans is subject to increased risk,” Dzneladze said.
In particular, interest rates on business loans in national currency increased in the third quarter of 2021, compared to the previous quarter. The interest rate on large business loans in Georgian lari increased to 13.4 percent, while the interest rate on small and medium business loans increased to 13.8 percent.
As for loans to individuals, the interest rate on mortgages in national currency stood at 12 percent in September 2021, while the interest rate on retail loans increased slightly to 18.2 percent.
Meanwhile, the share of non-performing loans in the banking sector is declining. In particular, the share of non-performing loans in business loans fell to 7 percent in the third quarter of 2021. The share of non-performing loans in mortgage is reduced to 5 percent, and to 6 percent in consumer loans.
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