NPLs at 2.7% in September 2018
In September 2018, the banking sector loan portfolio increased 18.8% y/y after growing 19.0% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 22.7% y/y and up 2.5% m/m to GEL 24.8bn (US$ 9.5bn). Deposits were up 15.7% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 19.3% y/y and up 1.6% m/m to GEL 21.9bn (US$ 8.4bn). Deposit dollarization stood at 62.4% (-2.9ppts y/y and -0.3ppts m/m) and loan dollarization was 55.5% (-0.8ppts y/y and flat m/m). NPLs stood at 2.7% in September 2018 (-0.4ppts y/y and +0.06ppts m/m).
NBG keeps monetary policy rate unchanged at 7.0%
At its meeting on 24 October 2018, NBG’s monetary policy committee decided to keep its key rate unchanged at 7.0%. Annual inflation was 2.7% in September, slightly below the 3.0% target. The committee does not expect a significant deviation of inflation from its target throughout 2018 despite increased macroeconomic risks due to high volatility on regional financial markets. The next committee meeting is scheduled for 12 December 2018.
