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Deposits increased by GEL1.8 billion in July

By Natalia Kochiashvili
Wednesday, August 26
According to the National Bank of Georgia (NBG), the volume of loans issued by commercial banks in July (excluding interbank loans) increased by GEL694.04 million (2.05%) compared to June (excluding exchange rate effect, increased by 0.72%) and amounted to GEL34.49 billion as of August 1st, 2020.

During the same period, the volume of loans in national currency increased by GEL232.94 million (1.61%), while the volume of loans in foreign currency increased by GEL461.10 million (2.39%) (excluding the exchange rate effect, it increased by 0.05%).

At the end of July 2020, commercial banks issued loans to resident legal entities in the national currency amounting to GEL4.44 billion (0.40% less than in the previous month), and in foreign currency amounting to GEL12.16 billion (2.83% more than in the previous month) (without exchange rate effect, 0.46%).

During July 2020, the volume of lending to the resident household sector increased by 2.37% or GEL395.84 million and amounted to GEL17.1 billion by August 1st of the current year.

“As of August 1st this year, the 'larization' ratio of total loans was 42.72 %. "Compared to July 1, 2020, the 'larization' of total loans decreased by 0.19 percentage points (excluding the exchange rate effect, increased by 0.38 %),” said in the report of the NBG.

According to the National Bank, GEL30.54 billion was deposited in the banking sector as of August 1st, which is GEL1.77 billion or 6.16% more than in July (5.41% more without exchange rate effect).

In July, compared to the previous month, there was an increase in time deposits by GEL684.57 million or 5.15% (increased by 4.58% without the effect of the exchange rate), and demand deposits by GEL1.09 billion or 7.02% Increased (increased by 6.13% without the effect of the exchange rate).

According to the NBG, the deposit 'larization' ratio was 39.42% as of August 1st, which is 0.83 percentage points higher than the same data of the previous month (excluding the exchange rate effect, it increased by 1.11 percentage points).

It should be noted that in the reporting period, the share of USD in foreign currency deposits was 84.53%, while the share of EUR was 14.11%.

As for interest rates, the weighted average annual market interest rate on time deposits in July was 6.68%, including 8.71% on deposits in national currency and 2.54% on deposits in foreign currency.