Order No. 131/04 on Determining the Procedure for Lending up to 1,000,000 GEL by Lending Organizations

Order No. 131/04 of the President of the National Bank of Georgia June 15, 2026 Tbilisi

On Determining the Procedure for Lending up to 1,000,000 GEL by Lending Organizations

In accordance with Subparagraph 'z' of Paragraph 1 of Article 15, Paragraph 3 of Article 48, Subparagraph 'a' of Paragraph 1 of Article 641, Part 7 of Article 625, Part 8 of Article 868 of the Civil Code of Georgia, and Subparagraph 'b' of Paragraph 1 of Article 25 of the Organic Law of Georgia "On Normative Acts," I order:

Article 1

1. Loans/bank credits up to 1,000,000 (one million) GEL issued by lending organizations must be issued exclusively in GEL. A loan/bank credit linked or indexed to any form of foreign currency is not considered a loan/bank credit issued in GEL.

2. For the purposes of this procedure, a lending organization is defined in accordance with Order No. 44/04 of the President of the National Bank of Georgia dated March 13, 2020, "On Approval of the Regulation on Lending to Physical Persons."

3. The requirements specified in Paragraph 1 of this Article do not apply if:

a) As a result of the issuance of a loan/bank credit, the total obligations of each borrower to the same lender exceed 1,000,000 (one million) GEL. When calculating total obligations, obligations secured by monetary funds and/or guaranteed by surety should not be taken into account;

b) The loan/bank credit is issued to a person who is not a citizen of Georgia and/or to a legal entity not registered in Georgia;

c) The loan/bank credit is fully secured by monetary funds in the same currency;

d) The borrower receives sufficient income to repay the loan/bank credit entirely in the currency of the loan/bank credit. Income is considered to be received in the currency of the loan/bank credit if the source of income is not sensitive to exchange rate fluctuations during the term of the loan/bank credit and its source of origin is associated with a country in which the currency of the loan/bank credit is the national currency. For the purposes of this subparagraph, in the case of loans/bank credits issued for business purposes, the healthy loan servicing coefficient determined by the internal policies and procedures of the lending organization must be fully met by income in the currency of the loan/bank credit;

e) Refinancing/modification for observation/restructuring of the loan/bank credit in the same currency is carried out, and simultaneously the volume of the borrower's existing obligations does not increase. An increase in the volume of obligations is not considered to include the capitalization of accrued and unpaid interest, commissions, penalties, and any other form of financial sanctions on the loan/bank credit, as well as notary, State Public Registry Agency services, and/or other expenses related to the loan/bank credit. For the purposes of this subparagraph, refinancing/modification for observation/restructuring is defined in accordance with Order No. 192/04 of the President of the National Bank of Georgia dated December 29, 2022, "On Determining Categories of Risk of Financial Instruments and Expected Credit Loss."

4. This Article also applies to guarantors of loans/bank credits, except for legal entities and organizational formations without legal entity status, as well as cases specified in Subparagraph 'v' of Paragraph 3 of Article 1 of the Regulation approved by Order No. 44/04 of the President of the National Bank of Georgia dated March 13, 2020, "On Approval of the Regulation on Lending to Physical Persons."

5. This Article also applies in cases where payments due according to the schedule under bank guarantees/letters of credit issued by lending organizations are made.

Article 2

The operation of Paragraph 5 of Article 1 of this Order shall apply to cases where payments due according to the schedule under bank guarantees/letters of credit issued by lending organizations arise after the entry into force of this Order.

Article 3

Order No. 176/04 of the President of the National Bank of Georgia dated July 21, 2025, "On Determining the Procedure for Lending up to 750,000 GEL by Lending Organizations," is declared invalid.

Article 4

This Order enters into force on July 1, 2026.

President of the National Bank of Georgia
Natela Turnava

http://www.matsne.gov.ge 22001001018011016993