Tbilisi (GBC) – Automobile loan portfolio remains as the most problematic. Up to 6% of loans (5.5 million) are inactive (non-standard, doubtful, hopeless),

The pre-pandemic (10/2019) coefficient (1.6%) has been rising since the spring of 2020, reaching a peak of 6.3% in February 2021 and decreasing to 5.8% by 01.01.2022.

According to the NBG, the share of automobile loan portfolio (GEL 0.647 million) denominated in USD decreased to 2.7%, while the share of non-performing loans in the Euro portfolio was 2.1% (GEL 0.539 million).

As you know, non-performing loans (non-standard, doubtful, hopeless) are regulated by up to 100% reserve requirement. At present, the banking sector has 2 billion GEL reserved for the entire portfolio (GEL43 billion). The 1 billion surplus reserve demanded by the NBG to the sector amid the pandemic has been almost completely reserved.

 The volume of car loans totals up to GEL 208 million, of which only GEL 8 million is issued to legal entities, the rest is retail (GEL 200 million) and of this, only GEL 80 million accounts for the car loans in foreign currency.(Source: Businesspartner)

Banks with total loans and reserve for possible losses on loans 

Source: Commercial Banks and the NBG