Government to take loans from banks

Georgian PM Nika Gilauri announced on June 1 that the state will take loans of GEL 250 million from the commercial banks via selling treasury liability bonds. The PM stated that the Government will finance several rehabilitation projects by this money.

Opposition-oriented analysts have challenged this statement. Soso Tsiskarishvili suggests that the state intends the racket of the banks as commercial banks’ assets have decreased by 11.3% and it could be difficult for the banks to mobilize such amounts.

Twenty banks and two foreign bank affiliations currently operate in Georgia. The combined assets of Georgian banks come to GEL 7.8617 billion.