The property appropriated by various financial organizations and private
individuals in payment of debts annually
reaches GEL 500 million, of which commercial
banks account for about 200 million , the Rezonansi newspaper writes.
According to statistical data available, as of the 4th quarter of 2017, the banks received property worth GEL 209,192,767 for payment of debts, and Bank of Georgia leads in this direction with GEL 94.98 million. The second is TBC-Bank with GEL 58.5 mln followed by Cartu - 31.8 mln, VTB Bank - 9.6 mln, Terabank - 5.9 mln, Basisbank – GEL 5, 4 million, Silk Road Bank – GEL 1, 1 million, the International Bank of Azerbaijan - 600,000, Credo Bank – GEL 357 866, and Halik Bank - GEL 310,450.
In 2016, banks received 454 objects in ownership, that is only 25.7% of the total volume, 337 - microfinance organizations (19%) and 55, 3% and 978 objects fell into the hands of private lenders and legal entities.
The year 2017 was almost the same as 2016. While there are no exact data on the number of appropriated objects, however, like in 2016 private lenders account for half of the total appropriated property, MFOs- a third and the rest volume of appropriated real estate accounts for banks.
According to the head of the NGO The Society and Banks Giorgi Kepuladze, banks and microfinance companies have toughened the conditions for granting loans and refuse to issue loans to those who, in their opinion, will not be able to pay in time that increased appeals to private lenders.