Larisation Program: loans of up to $80m converted into Georgian lari

The National Bank of Georgia has set new rule for the currency exchange offices yesterday. Photo by N. Alavidze/, 24 Mar 2017 - 18:57, Tbilisi,Georgia

A total of 5,617 loans worth of up to $80 million have been converted into the Georgian national currency, the lari, within the Program on the Larisation of Loans.

The Program on the Larisation of Loans was approved by the Government of Georgia on January 11 in a bid to ease the debt burden in the country caused by the fluctuation of the lari against foreign currencies in the second half of last year.

The Program started on January 17 and continued for two months. This was a one-time measure for borrowers who were hit hard by the sharp depreciation of the exchange rate.

Per the program, loans received in US dollars before January 1, 2015 and signed for against real estate collaterals were eligible for conversion into lari-denominated loans.

In total 33,000 loans have been identified as falling under the program’s eligibility.