Banks double their profit

Georgian banks almost doubled their profit in 2013. Their profit came to almost 398 million GEL in total, while in 2012 this figure was 134 million GEL. In 2013, banks received more than 2.43 billion GEL income whereas their expenditures were 1.9 billion.

The biggest client of the banks has been the state so far. It is observed that the banks, although declaring their support towards small and medium sized businesses, do not in reality do so and mainly have business with the state, which is a stable, solid and reliable partner. Conversely, small and medium sized businesses are less attractive. They have much risk and banks do not want to deal with them.

As a result, small and medium businesses apply to different financial organizations, which give out loans with high interest rate. This creates problems to these businesses and in reality does not help promote entrepreneurial activities, but rather damages them.