MFOs closed the half year with a net loss of  GEL 80 mln

MFOs closed the half year with a net loss of GEL 80 mln

access_time2019-09-11 17:33:46

According to the National Bank of Georgia (NBG), 53 microfinance organizations operating in the country closed the half year with a net loss of  GEL 80 million.

In one year  their number decreased by 19 as well as  a volume of assets of the microfinance sector.

MFOs’  assets amounted to  GEL 1.3 billion which is 200 million less than in the same period in 2018.

The losses were caused by the tightening of lending rules introduced by the National Bank, since before the regulations, MFIs mainly provided high-interest loans to individuals.


The National Bank adopted a number of regulations such as a ban on granting loans to individuals who do not have a fixed income. A ceiling on interest on loans up to 50% per annum was introduced, the terms, interest and conditions for issuing mortgage and car loans were also limited .



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