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Average Annual Interest Rate of Pawnshop Loan Amounts to 54.1%

By the end of 2013, in total 1 031 organizations were engaged in the pawn business in Georgia.
Of these, 45.8%  are located  in Tbilisi, 13.5% – in Imereti, 12.3% – in Adjara, 10.6% – Samegrelo-Zemo Svaneti region, while the remaining 17.8% functionin other regions. The study conducted by “Sakstat” says.

In 2013, the weighted average interest rate of a pawnshop loan amounted to 54.1%. The average annual interest rate in local currency was 61.7% and in foreign currency – 48.3%.

The highest average annual interest rate of 81.6% was registered in Kartli,  while the lowest of  30.8% was observed in Mtskheta- Mtianeti.

The pawnshop balance sheet profit in 2013 (before taxes and unforeseen expenses) amounted to  GEL 21.6 million, of which 54.2% are pawnshops operating inTbilisi, while the rest are distributed among regions of Imereti – 18.1%; Adjara – 12.7%; Samegrelo-Zemo Svaneti – 9.3%.

The amount of cash in pawnshop cas desks amounted to  GEL 13.4 million in 2013 year-end. 71% of them were in local currency and 29% – in foreign currency.

By the end of 2013, the pawnshops placed in  banks cash in the amount of  GEL 3.7 million, including 77% – in  national currency, and 23% – in foreign currency.

It should be noted that the total amount was placed in  resident banks, loans granted in 2013 amounted to  GEL 310.7 million. 96% of loans were issued to individuals, while the remaining 4% to legal entities.

A volume of the fixed and intangible assets in pawnshops amounted to  GEL 10.3 million  by the end of 2013.

By the end of 2013 a volume of borrowed funds amounted to GEL 209.9 million. The majority of them (75%) are borrowings in foreign currency, 99% of the loans are taken by residents.

The number of pawnshop clients  totaled 682 thousand in 2013; of these, the vast majority (about 99.8%) are  natural persons.