Georgia's Economic Outlook 2020

GROWING AND WELL-CAPITALISED BANKING SECTOR SUMMARY Prudent regulation and oversight ensuring financial stability Demonstrated strong resilience towards both domestic and external shocks without single bank going bankrupt No nationalization of the banks and no government ownership since 1994 Resilient to different shocks to the economy, room for healthy credits growth with retail loans at 32.8% of GDP and total loans at 63.8% of GDP in 2019 Source: National Bank of Georgia, Geostat 50 WA5 40 30 20 10 63 BANKING SECTOR ASSETS, LOANS AND DEPOSITS 25.0% CAGR Assets, GEL bn ■Loans, GEL bn Source: NBG 47.2 31.9 26.2 BANKING SECTOR LOANS TO GDP, 2019E Source: IMF, Central Banks Bulgaria 49.3% Poland Czech Rep. Russia Croatia Armenia Slovakia Georgia Estonia Turkey Israel 49.9% 50.7% 53.3% 55.8% 55.8% 62.3% 63.8% 68.7% 70.1% 71.0% Deposits, GEL bn NON-PERFORMING LOANS, LATEST-2019 Lithuania Hungary Georgia Czech Rep. Poland Romania Belarus Turkey Latvia Armenia Bulgaria Croatia Bosnia & Herz. Portugal Kazakhstan Russia Source: IMF, NBG 1.2% 1.5% 1.9% 2.9% 4.0% 4.6% 4.6% 4.7% 5.0% 5.4% 7.6% 7.6% 7.7% 7.7% 8.6% 9.3%

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