Bank of Georgia Financial Snapshot and Loan Portfolio Quality slide image

Bank of Georgia Financial Snapshot and Loan Portfolio Quality

Debt-to-GDP ratios flattened after significant decreases in previous years Banking sector loans to households and legal entities as % of GDP Household loans to GDP ■Legal entity loans to GDP Public debt as % of GDP ■Domestic public debt to GDP External public debt to GDP 64.8% 59.6% 52.8% 54.7% 47.2% 40.8% 35.8% 27.9% 29.5% 31.2% Source: NBG, GeoStat, BOG 2015 2016 2017 2018 2019 Private sector debt to GDP flattened at around pre-pandemic levels as credit growth started to align with nominal economic growth 77.6% 71.8% 62.4%60.7% 62.4% 2020 2021 2022 1Q23 2Q23E The previous decreases in debt-to-GDP ratio have created room for healthy credit growth 60.2% 49.7% 40.3%39.4% 38.9% 40.4% 39.8% 36.7% 31.9% 28.3% 28.8% 29.5% 31.0% Source: MOF, GeoStat, BOG 2020 2021 2022 1Q23 2Q23E Public sector debt to GDP also flattened as nominal economic growth started to sync with the growth rate of public borrowings Given the reduced debt burden and increased international reserves, the Georgian economy is well-positioned to withstand possible shocks 11 °37.5% 38.2%
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