The FINANCIAL -- The volume of lending by commercial banks (including loans to non-residents) decreased by 36.6 million GEL (0.7 percent) compared to June 1, 2009 and amounted to 5.4 billion GEL by July 1, 2009.

The volume of loans provided in the national currency decreased by 57.3 million GEL (4.5 percent) and constituted 1.2 billion GEL, while the volume of loans in foreign currency grew by 20.7 million GEL (0.5 percent) and exceeded 4.1 billion GEL.

"By the end of June 2009 commercial banks issued to resident legal entities 483.2 million GEL worth of national currency-denominated loans (2.3 percent or 10.9 million more than in the previous month) and 2.5 billion GEL worth of loans in foreign currency (3.5 percent or 84.3 million more than in the previous month)," NBG says.

Out of the total volume of lending to legal entities, the biggest share falls on trade – 46.8 percent. Compared to the previous month the volume of loans provided for trade increased by 2.2 percent and reached 1.4 billion GEL.

Share of loans provided to the industrial sector constituted 21.0 percent of all loans to legal entities and amounted to 627.0 million GEL by July 1, 2009 (10.7 percent more than in the previous month). 11.9 percent fall on construction, amounting to 354.6 million GEL (0.7 percent decrease compared to the previous month). Thus, 78.6 percent of the total volume of lending to legal entities falls only on three sectors – industry, construction and trade.

The volume of lending to individuals decreased by 2.3 percent, during the past month, and reached 2.2 billion GEL by July 1, 2009.

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