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News - Financial

NBE plans to eliminate the cap on private sector credit growth by the end of September 2025

Apr 06, 2025
NBE plans to eliminate the cap on private sector credit growth by the end of September 2025
  • Earlier this year, the cap was increased 14% to 18% due to declining inflation, tight monetary conditions, and improved supply-side factors.
  • Prior to the cap, annual credit growth in the banking sector averaged over 25%, with some major banks exceeding 30%.
  • As part of the reforms, the government will introduce market-oriented Treasury bonds to replace the current system, which requires banks to purchase bonds at a fixed interest rate of 9%. This directive, implemented in November 2022 will be repealed by June 2025.