Expected Q4 2009 Financial Performance
Immediate Priorities - Georgia
As operating environment is improving we intend to take advantage of high liquidity (excess liquidity
of GEL 360 mln as of end of October 2009) and strong capital (CAR-20%) to step up lending in
underleveraged Georgian economy (banking debt to GDP of c. 25%)
In order to capture new business, we are decreasing interest rates on corporate and retail loans
Aggressively stepping up lending to top corporate clients in Georgia, including refinancing their loans
with other Georgian banks
Lending rates decreased from 16% - 18% to 14.5% -16.5%
Focus on retail lending in Georgia with particular emphasis on micro loans, consumer loans and
mortgages of up to US$ 100,000
Minimum rate on micro loans has been decreased from 26% to 17%
Minimum rate on mortgages has been decreased from 16.5% to 14.5%
At the same time we made two rounds of interest rate cuts on retail deposits
On 1-year US Dollar deposits interest has been cut from 11.75% to 10.5%. Further interest rate
cuts are expected in 1H 2010
We are also in process of aggressively decreasing interest rates on corporate account balances on case
by case basis
Focus on loan recoveries. Loan loss reserves amounts to GEL 123 mln in BoG standalone accounts
Lobko
BANK OF GEORGIA
www.bog.ge/ir
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January 2010
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