In the first quarter of 2023, the demand for lending to both individuals and legal entities has slightly increased, despite tightened interest and non-interest lending conditions, mainly for loans issued in foreign currency; The tightening of loan conditions in foreign currency is partly caused by the tightening monetary policy of the US Federal Reserve Bank (the US regulator) and the European Central Bank. The tightening of the conditions mainly envisages a slight reduction of the credit line limit and loan maturity. The interest rates in GEL did not change, while for loans in dollars and euros decreased by approximately 0.7%.
In the first quarter of 2023, business loans increased by 19% compared to the previous period, the share of non-performing loans stood at 4%. The growth rate of loans granted to individuals amounted to approximately 16.9% that is mainly caused by lending in the national currency. The interest rate on mortgage loans in dollars and euros increased by about 0.7 points and was set at 7.8% in dollars and 6% in euros, the similar rate in GEL on mortgage loans is about 12.8%, 18.9% on consumer loans; a significant change is not observed in terms of non-performing loans on individual loans - 3% in the mortgage and 5% in consumer loans.
