National Bank: Dolarization rate of loans decreased by 8 percentage points

12:04, 28.05.2018

In Georgia, foreign currency loans are mostly used by borrowers who receive income in national currency and in most cases the risks cannot be taken into account. It is stated in the the annual report of National Bank of Georgia.

As reported notes the one of the main tasks of the National Bank in 2017 was to reduce the dollarization – the increase Larization. In its turn Larization is the part of the National Bank’s long-term policy.

The report covers activities implemented by the National Bank for promoting Lari, which includes a 10-point plan of larization, developed by the National Bank in cooperation with the government, part of which has already been implemented and some are in the process of implementation.

As the Bank notes, the implemented activities have impact on the banking system already in 2017 – the rate of dollarization of the loan decreased by 8 percentage points over the year and for deposits by 5 percentage points. According to the same data, the share of dollar loans for individuals was decreased by 12 percentage points.

Economics

Dolarization

Larization

National Bank

report 2017