Interest rates for
loans in national currency are constantly growing – the National Bank reports
that as of October 2017, the base rate
for loans in lari was 16.6%, whereas in 2016 - 13.8%.
interest rate on loans in national currency has increased from 17.5% to 21.4% from
October 2016 to October 2017. Interest rates on loans for individuals are also relatively high and
total 26, 2%, while in the same period
of 2016 - 24, 1%.
At the same time,
interest on loans in foreign currency is getting cheaper - in October 2017, the
interest rate averaged 8.2%, whereas in 2016 - 9.2%.
According to the
financier Irakli Berdzenadze, such an increase in interest on loans in national
currency is caused by several factors - the
unstable environment, the high cost of resources in the national currency and
the larization program.
"The program aimed
to increase the competitiveness of the national currency against the dollar and to strengthen its rate. But as
it turned out, targets were not met. In the National Bank wanted to achieve a preferential
position of the lari, it had to introduce not only a ban on issuing loans in
foreign currency for less than GEL 100,000, but also on deposits. Then
depositors would have to transfer their deposits into lari, and banks would
have a cheap resource," he explains.
words, refinancing loans issued by the National Bank at a fairly high
percentage are today the only source of receiving funds in the lari.
end, it turns out that banks have no cheap lari, so they have to increase
interest. The bank, which attracts amounts at 9-10%, will lend at least at 16%, " the
In all countries
where refinancing loans are cheap - interest rates on loans in national
currencies are also low, Berdzenadze notes.
the refinancing rate is 2, 5%, in Britain 0, 5%, in Hungary 0.9%, in South
Korea 1, 5%, in Australia 2%, in Poland 2, 5%, etc that makes loans in these
countries cheaper. In Georgia, banks get resources in lari at a high price and are forced to lend
out money at a high price, "Irakli Berdzenadze stresses.