Georgian Citizens Annually Lose Property Worth GEL 500 Mln

access_time2018-02-14 12:17:14

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.


Much more property is received by MFOs, online credit organizations and private lenders who account for two-thirds of all confiscated property.


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.


 The situation is clearly out of control, as the amount of appropriated  property is growing every year. According to the NGO Society and Banks, in 2011-206, the National Bureau of Enforcement transferred 11 796 objects into the ownership of creditors - including 1 343 facilities  in 2014, 1 410 in 2015, and 1769 in 2016.


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.


"Our annual research shows that the share of banks and MFIs in the appropriation of property is significantly lower than of individuals and especially private lenders. As for borrowers, most of them are citizens who cannot get a loan from banks and MFIs, " he notes.


 The trend shows that insolvency of the population is constantly growing. Private lenders  and bankers have different priorities – the first  aim at getting property for pennies, whereas for banks the client’s  property is not desirable. Bankers prefer to have solvent customers who will repay their debts regularly.


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