Interest rates on government securities decline in Georgia
In June, the monetary policy rate was 8.25 percent in Georgia, Trend reports referring to National Bank of Georgia (NBG).
In the second quarter of 2020, interest rates on government securities declined, which was partly due to a decrease in the monetary policy rate.
According to NBG, the difference between long-term and short-term interest rates increased slightly compared to the previous quarter. This indicator remains low, mainly due to increased confidence in monetary instruments and the predictability of interest rates.
The interest rate on deposits in the national currency increased by 0.3 percentage points to 9.9 percent in June compared to March, while the interest rate on deposits in foreign currency did not change significantly and amounted to 2.9 percent.
Interest rates on mortgage and consumer loans in lari have tightened slightly. With regard to corporate lending, the banking sector is expected to see a slight decrease in interest rates in the next quarter.
Retail lending rates rose in June versus March, while corporate lending flows did not change significantly. In particular, the interest rate on retail loans increased by 1.5 percentage points, on loans to small and medium-sized businesses – by 0.3 percentage points to 10.2 percent, and the interest rate on corporate loans decreased by 0.4 percentage points to 8.8 percent. The average interest rate on loans to legal entities in local and foreign currency decreased slightly.
Representatives of the banking sector do not expect significant changes in interest rates on loans in foreign currency, said NBG.
Source:TREND News Agency