The Georgian financial system remains stable and continues to support economic lending, according to the latest report from the Financial Stability Committee of the National Bank of Georgia (NBG).

The NBG reports that, as of April 2025, the banking sector maintains healthy capital and liquidity indicators. Compared to the previous year, credit activity has gradually normalized, with the annual growth of loans—excluding exchange rate effects—reaching 15.5% in April 2025.

“This growth was predominantly driven by an increase in business loans. Data for the first quarter of 2025 indicates that the ratio of loans to gross domestic product (GDP) remains below its long-term trend. On one hand, the strong economic growth recorded in the first quarter, and on the other, the normalization of credit activity, contributed to an increase in the negative gap in the loans-to-GDP ratio. The Committee assesses that, given the current credit activity dynamics and the gradual economic normalization, this negative gap will close within 2025. Therefore, there is no need to adjust the cyclical component of the capital countercyclical buffer at this stage. Commercial banks will continue to gradually accumulate the neutral component of this buffer,” the Financial Stability and Monetary Policy Committees stated in their decision.

Furthermore, the regulator has decided to raise the limit for unhedged foreign currency loans from GEL 500,000 to GEL 750,000. This means citizens with an income of up to GEL 750,000 will no longer be permitted to take out loans in currencies other than the Georgian lari. The new limit will come into effect on August 1, 2025.

“The National Bank remains committed to reducing structural risks associated with high levels of dollarization in the economy. Despite significant progress in decreasing dollarization through measures implemented by the NBG, the associated structural risks continue to pose considerable challenges for the financial sector. In line with its long-term de-dollarization policy, the National Bank, in coordination with industry stakeholders and considering macroeconomic conditions and risks, continues to implement these measures. As part of this policy, the limit on unhedged foreign currency loans has been increased from GEL 500,000 to GEL 750,000,” the NBG stated.

The next meeting of the Financial Stability Committee is scheduled for October 1, 2025.

Today’s decision by the Financial Stability Committee of the National Bank restricts individuals with income in the national currency from taking out foreign currency loans exceeding GEL 750,000. This change aims to reduce the dollarization of bank loans, supporting the country’s ongoing financial stability efforts.