The messenger logo

Georgian banks might face difficulties

By Messenger Staff
Wednesday, June 10
Georgian banks demonstrated their stability during the August war and the first wave of the economic crisis. However some signs of crisis have appeared in the banking sector as well.

Bad loans have become problematic for many banks. They have been forced to increase interest rates on new loans and impose strict conditions for issuing loans. This has resulted in a dramatic decrease in the number of companies and private individuals taking out loans.

For the first time in the last ten years the banking sector recorded losses in 2008, of around GEL 215 million. In 2007 it made a profit of GEL 109 million. There are 20 banks and 2 foreign bank affiliations active in Georgia at present.