Difficulties with foreign currency loans

According to the September data, the loan in foreign currencies for businesses and individuals has marked only an inconsiderable increase of 3 billion ALL.

Foreign currency loans were the most preferred instrument for business and individuals, due to the low interest norms. On the other hand, banks could loan without conditions, because they had unlimited access to the funds of their mother banks.

In 2009, the currency loans were 110% higher than the deposits. This means that the banks were giving more loans than they had deposited in foreign currencies, and the fund came from the mother banks. But by the end of November it fell to 83.7%, a trend that has continued in the first months of this year, mostly due to the fact that the foreign funds were not unlimited anymore, due to the crisis, and the banks were obliged to balance their accounts.

This tendency shows that the banks are being more careful with the possible dangers.

However, the shrinking of the foreign currency was compensated by the loans in money, which increased with 17.6%, compared to one year ago.

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