Starting August 1, 2025, the National Bank of Georgia (NBG) will increase the cap on unhedged foreign currency loans from GEL 500,000 to GEL 750,000. This means individuals earning in GEL won’t be able to take out foreign currency loans above GEL 750,000.

Davit Utiashvili, Head of NBG’s Financial Stability Department, said dollarisation remains a major challenge, with 43% of loans and 50% of deposits still in foreign currencies—among the highest rates globally.

The change is part of ongoing efforts to reduce foreign currency use. The new cap is expected to apply to around 1,000 loans annually, worth roughly USD 150 million. Utiashvili noted the dollarisation rate may drop to 40% by year-end, with further measures possible if risks persist.

The trend has been influenced by foreign currency inflows since 2022, which increased deposits and encouraged foreign currency lending. NBG will continue to monitor developments and adjust policies as needed to support long-term de-dollarisation.