Georgia's central bank raises foreign loan threshold to ₾1M to curb dollarization
The National Bank of Georgia (NBG) has raised the minimum threshold for foreign currency loans to ₾1,000,000 for borrowers earning income in the national currency. This adjustment follows a gradual increase in limits over recent years, with the previous cap set at ₾750,000 since August 2025.
The move is part of broader efforts to reduce financial dollarization and protect borrowers from currency-related risks. The NBG’s decision will take effect from July 1, 2026. It builds on earlier steps, including a rise from ₾200,000 in 2024 to ₾750,000 in August 2025. The regulator aims to shield individuals without foreign currency earnings from exchange rate fluctuations.
In addition, the central bank will lower the upper limit of the temporarily increased reserve requirement ratio on foreign currency liabilities by 5 percentage points. This adjustment comes as global financial conditions tighten moderately due to the conflict in the Middle East.
The NBG also highlighted persistent risks, such as volatile commodity prices, rising global inflation expectations, and further financial tightening. Despite these challenges, the Georgian financial system remains resilient, continuing to support lending across the economy. The new threshold of ₾1,000,000 reflects the NBG’s ongoing push to curb dollarization and strengthen financial stability. The central bank’s measures aim to balance risk reduction with sustained economic lending. The changes will be implemented from mid-2026.
