In Jun-24, NBG sold US$ 102.0mn to curb GEL volatility.
Overall, the NBG is a net buyer of US$ 67mn in 1H24 (purchased US$ 286.6mn during January-April and sold US$ 219.8mn in May-June 2024).
“In Jun-24, the banking sector loan portfolio increased by 17.8% y/y (+1.7% m/m), excluding FX effect, after a 19.0% y/y growth in previous month. In unadjusted terms, loan portfolio rose by 21.2% y/y (+1.7% m/m), reaching GEL 57.3bn (US$ 20.4bn), after growing 23.3% y/y in May-24.
By sector, corporate loans grew by 20.6% y/y (excluding FX effect), while retail loans increased by 15.5% y/y. Loan dollarization slightly reduced to 45.2% (flat y/y and -0.45ppts m/m) in Jun-24.
On the deposits side, there was a 13.5% y/y increase (excluding FX effect) to GEL 54.8bn (US$ 19.5bn) in Jun-24, following a 12.2% y/y growth in the previous month.
In terms of currency breakdown, GEL deposits increased by 21.3% y/y and FX deposits (exc. FX effect) were up 5.9% y/y. As a result, the level of deposit dollarization reduced to 49.1% (-1.71ppts y/y and -0.74ppts m/m) in Jun-24”- Galt&Taggart weekly review reads.
