NPLs at 2.2% in February 2020
In February 2020, the banking sector loan portfolio increased 18.1% y/y after growing 16.3% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 19.6% y/y and down 0.9% m/m to GEL 31.6bn (US$ 11.3bn). Deposits were up 13.5% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 15.8% y/y and up 0.2% m/m to GEL 26.5bn (US$ 9.5bn). Loan dollarization stood at 54.3% (-2.43ppts y/y and -0.83 m/m) and deposit dollarization was 61.7% (-0.61ppts y/y and -1.63ppts m/m). NPLs stood at 2.2% in January 2020 (-0.74ppts y/y and flat m/m).
Current account deficit at 5.1% of GDP in 2019
CA deficit narrowed to 5.1% of GDP (US$ 897.3mn) in 2019 from 6.8% in 2018, according to NBG. Goods trade deficit (21.0% of GDP) decreased by 9.3% y/y to US$ 3.7bn, as exports were up 12.2% y/y and imports up 1.8% y/y. In addition, positive services balance (12.2% of GDP) and current transfers (7.7% of GDP) together financed 95% of the goods trade deficit. Net FDI (5.6% of GDP, +0.3ppts y/y) and portfolio investments (4.0% of GDP) were major items for financing the current account deficit.
NBG sold US$ 40.0mn
On 25 March 2020, the NBG intervened on the FX market and sold US$ 40.0mn to curb GEL depreciation pressure. This was third FX intervention in 2020 for a total of US$ 100.0mn sales.
