LONDON (ShareCast) - (Sharecast News) - Bank of Georgia Group said it had agreed with its regulator to set up a GEL400m (?113m) general provision as a buffer to combat the uncertainty caused by the Covid-19 pandemic.
The lender said the provision represented about 3.3% of its loan book, and would be taken in the first quarter of 2020.

"Our understanding is that the specific quantum of the provision reflects the National Bank of Georgia's current expectation of estimated credit losses on the bank's lending book for the whole economic cycle, given current economic expectations," Bank of Georgia said in a statement on Monday.

The central bank also considered BoG's capital ratios to be "sufficiently in excess" of the expected minimum capital requirements at March 31.

BoG added that it expected its CET1, Tier 1 and Total Capital adequacy ratio requirements at 6.9%, 8.7% and 13.3%, respectively at the end of March.

"The NBG has also stated its willingness, if necessary, to fully or partially release the remaining requirements of Pillar 2 capital buffers, and, again if necessary, to introduce initiatives to reduce liquidity requirements," BoG said.

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