The Financial Stability Committee of the National Bank of Georgia [NBG] made a number of decisions in order to “further mitigate the risks of dollarisation” and increase the maximum maturity of unsecured consumer loans.

The NBG highlighted “significantly” reduced trends of dollarisation across Georgia, but said it had still decided to impose an additional requirement on regulated financial institutions operating in the country that would come into effect on January 1.

For individuals with a total debt of up to GEL 300,000, financial institutions will issue a new foreign currency loan only under hedged currency risk conditions under the new rules. The NBG also decided to increase the maximum maturity of unsecured consumer loans to four years. Considering that the high growth rate of unsecured consumer loans recorded in 2022 is reduced, and the activity remains at a sustainable level, from November 1 of 2023, the maximum term limit for this type of loans will again increase from 3 to 4 years.