The FINANCIAL -- With a 12.0% annual interest rate on term deposits in the national currency Georgian Liberty Bank leads the list of banks’ best offers for Georgian depositors.
Progress Bank has the next most attractive offer (10.25%) for depositors, followed by Bank of Georgia, VTB Bank, BasisBank and Halyk Bank with 9%. With 6.75% APY Bank Republic and Cartu Bank have the lowest interest rates on term deposits. Georgia has the seventh highest deposit rates worldwide.
The total volume of deposits at Georgian commercial banks in the national currency amounted to GEL 4,714,507 thousand as of 1 March, 2015, NBG statistics revealed. The figure was GEL 4,586,207 thousand in the same period of previous month. The amount of deposits in foreign currencies was GEL 8,633,673 thousand as of 1March 2015. It was GEL 8,154,442 thousand for February 2015.
Interest rates on deposits have been characterized with a reducing tendency recently. The average interest rate on term deposits in the foreign currency was 6.6% for March 2014, while currently it amounts to 5.5%. As for the interest rate on term deposits in a national currency, savers receive on average 8.8% at the moment, while their benefit was 9.0% in the same period of the previous year.
Progress Bank, that has the second best offer for depositors in the national currency, has the most attractive offer in foreign ones. With 6.5% for USD and 6.0% for EUR deposits the Bank has the highest rate. The less attractive offer on USD deposits is delivered by Liberty Bank where the rate amounts to 4.00%. It is followed by Cartu Bank, ProCredit Bank Silk Road Bank (BTA Bank) and Bank Republic offering just 4.75% for savers. With an annual 3% on EUR deposits Liberty Bank leads the list of lowest rates in the European currency.
Liberty Bank Georgia offers term deposits with 12% APY in the national currency; Progress Bank – 10.25%; Bank of Georgia - 9%; TBC Bank – 8.50%; BasisBank – 9%; VTB Bank Georgia– 9%;
KSB Bank - 9%, Bank of Georgia, BasisBank and Halyk Bank also offer 9%; ProCredit Bank 7.5%; Bank Republic, SocGen Group and Cartu Bank - 6.75%.
According to deposits.org, providing the International Deposit Rates Exchange (IDRE) globally, Georgia has the seventh highest deposit rates worldwide. With 29% Belarus leads the list of most attractive deposit interest rates worldwide. It is followed by Argentina, which offers 24.95%. Against the background of ongoing economic recession Ukraine offers 24% for depositors. APY in Iran is 22%; in Mongolia it is 15.1%; Uganda- 13%.
Georgia's neighbour Turkey delivers 9.50% to its depositors. In Russia the rate is 9.20% and in Armenia – 9%. The lowest rate has been shown at Liechtenstein Czech banks, measuring 0.05% and 0.10% respectively.
Contrary to its less attractive deposit rate, KSB Bank has the best offer for consumer loans. With an annual 13.5%, the Bank leads the list of the best options for lenders. It is followed by Progress Bank with 14.0%; BasisBank – 14.09%; Halyk Bank - 14.1%; Bank of Georgia – 14.41%; ProCredit Bank – 15%; TBC Bank – 15.1%; VTB Bank Georgia – 15.4%; Bank Republic, SocGen Group – 15.58% and Liberty Bank – 16%.
According to NBG, the credit portfolio of Georgian banks has made up GEL 13,902,215,000 as of March of the current year. The number is only 4% more than in the previous month. The volume of overdue loans of commercial banks totalled GEL 305,646,000 as of 1 March, 2015. The number has grown from the GEL 294,768,000 from February 2015, showing a 14% increase.
Georgian commercial banks have issued more than GEL 5 billion of loans as of 1 March, denominated in the national currency. Over GEL 9 billion is made up by loans in a foreign currency. GEL 146,325,000 is the figure of overdue loans out of the total credit portfolio given out in the national currency. GEL 159,321000 is made up by overdue loans denominated in a foreign currency.
Contrary to deposit interest rates, market interest rates on loans have been characterized by a growing trend in 2015. Whereas in December 2014, the annual interest rate on loans was 17.5% on GEL denominated loans, in February 2015 the figure reached 18.5%. As for loans in a foreign currency, the interest rate stood at 10.5% in December 2014; in the two months following it reached 10.8%.
Name of the Bank APY in GEL APY in USD APY in EUR
Liberty Bank 12.00% 4.00% 3.00%
Progress Bank 10.25% 6.50% 6.00%
Bank of Georgia 9.00% 5.00% 5.00%
VTB Bank Georgia 9.00% 5.00% 5.00%
BasisBank 9.00% 5.00% 4.50%
Halyk Bank 9.00% 5.00% 4.00%
KSB Bank 9.00% 5.00% 4.50%
TBC Bank 8.50% 5.00% 4.00%
Silk Road Bank (BTA) 7.50% 4.75% 4.75%
ProCredit Bank 7.50% 4.75% 4.00%
Bank Republic 6.75% 4.75% 4.75%
Cartu Bank 6.75% 4.75% 4.75%