More credit issued by commercial banks

In June 2008 credits issued to the national economy by commercial banks increased by GEL 2 billion. By the end of that month the amount of credit issued was GEL 5.4 billion higher than it had been at the same point in 2007.

The amount of loans in GEL issued by banks to the national economy has increased more rapidly than that of foreign currency loans. During the last year loans in the national currency increased 210% to a total of GEL 1.9 billion. Those in foreign currency increased by more than GEL 3.5 billion from a higher base. Therefore the share of bank loans to the state in GEL increased from 25.7% to 35% in the past year, it was reported in newspaper 24 Saati.

On July 1 of the present year 20 commercial banks were operating in the Georgian banking sector, including 2 foreign bank branch offices. Foreign capital forms part of the base holding of 14 of the banks.