Currently, 8 microfinance organizations are in liquidation process.
In 2019, 67 MFOs operated in the market, which were mainly engaged in taking loans from commercial banks and issued them to clients at a significantly higher interest rate.
The regulator says this process is not unexpected as it was evident that many MFIs would not be able to follow the regulations, and only the largest and strongest companies will continue operating on the market.
According to the President of the National Bank Koba Gvenetadze, a large number of microfinance organizations does not mean competition as competition can be only in a healthy market, between healthy microfinance organizations.
As of August 2020, the loan portfolio of the microfinance sector totals GEL 1.3 billion, profit amounts to GEL 13 million.
The microfinance sector employs 4,035 people.